Mixed Economy
What is a Mixed Economy?
An economic system combining private and public enterprise
What is a Traditional Economy?
Is a system that relies on customs, history, and time honored beliefs
What is a Market Economy?
An economic system in which production and prices are determined by unrestricted competition between privately owned businesses
What is a Centrally Planned Economy?
A planned economy is a type of economic system where investment and the allocation of capital goods take place
What is a Circular Flow Model Economy?
This Economy depends on how much money flows through the economy
Advantages to a Mixed Economy?
Mixed Economies can reduce the amount of government regulation and government control in a command economy
Advantages to a Traditional Economy?
The main advantage of a traditional economy is that it produces goods and services which are required for that family. People know exactly there roles and what they are going to get
Advantages to a Market Economy?
Competition leads to efficiency because businesses have fewer costs, which results to making more money
Prices are normally kept under control so that everyone can afford to attain goods and services
What are some Advantages of a Circular Flow model Economy?
If injections into the circular flow of money exceed, then the money supply is increases in the economy
Disadvantages of a Mixed Econonmy?
They tend to lean more toward government control and less toward individual freedoms
Disadvantages of a Traditional Economy?
This economy suffers from not changing because they think that the methods they are doing are always correct and never need to change
What are disadvantages to a Market Economy?
These Economies rely on hunting, fishing, gathering, and farming, which can be a disadvantage because the weather is bi-polar and can ruin the crops/soil
What are some Disadvantages of a Centrally Planned Economy?
Workers sometimes lack incentive to work since the government owns all production factors. This can result in performance issues.
What are some disadvantages of a Circular Flow model Economy?
This type of Economy can lead to a decline in employment, income, output, and prices
Characteristics of a Mixed Economy?
It reflects characteristics of capitalism and socialism
Characteristics of a Traditional Economy?
Often based on one or a few: Agriculture, hunting, fishing, and gathering. Barter and trade is often used instead in place of money
What are some Characteristics of a Market Economy?
One of the most important characteristics of a market economy is the role of a limited government. Most decisions are made by buyers and sellers, instead of the government
What are some Characteristics of a Centrally Planned Economy?
Much like the name says, the government controls all the decisions made so they determine prices for goods and services.
What are some characteristics of a Circular Flow Model Economy?
This economy is a circle of daily decisions and activities that involve businesses
What country would be considered a mixed economy?
France, Has a mix of both command and market economies
What country would be considered a Traditional Economy?
Latin America is considered a Traditional Economy because of the rural area
What country would be considered a market economy?
Germany would be considered a market economy because the prices of goods and services are set by supply and demand
What country would be considered a Centrally Planned Economy?
China is a centrally planned economy because they control everything.
What country would be considered a Circular Flow Model Economy?
Canada can be considered a circular flow model