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Works Cited

"Centrally Planned Economy Definition | Investopedia." Investopedia. N.p., 09 Feb. 2010. Web. 09 Dec. 2015.

"6 Factors That Make a Market Economy." About.com News & Issues. N.p., n.d. Web. 09 Dec. 2015.

"3 Characteristics of a Traditional Economy." About.com News & Issues. N.p., n.d. Web. 09 Dec. 2015.

"What Command Economies Are Really Good At." About.com News & Issues. N.p., n.d. Web. 09 Dec. 2015.

"What Is a Mixed Economy?" About.com News & Issues. N.p., n.d. Web. 09 Dec. 2015.

Controlled Economies

Examples of Places with Controlled Economies:

  • China, Cuba, North Korea, Russia

Characteristics:

  • Government controls production and prices
  • Seeks to control what it produced and how resources are distributed and used
  • Supply, work-force, and cost are pre-determined

Strenghts:

  • Not affected by emergency or disaster
  • Easily meets the needs of the people
  • Possible to adjust the production rate

Weaknesses:

  • Incentives can be misplaced
  • Often end up with not enough of certain products
  • Issues cannot always be resolved easily

Market Economies

Examples of Places With Market Economies:

  • United States, Australia, Singapore, Hong Kong

Characteristics:

  • Based on supply and demand
  • Usually evolve from a traditional economy
  • Bartering, or trading one good for another, is popular in market economies
  • Make things other people need

Command Economies

Strengths:

  • High degree of economic freedom
  • Efficient
  • Competition drives businesses to keep cost down and production high

Examples of Places with Controlled Economies:

  • China, Cuba, Iran, Libya, North Korea, Russia

Characteristics:

  • Production determined by the rulers
  • Creates a central economic plan, which is then broken down into smaller ones to achieve goals
  • Central plan sets priorities for production and the government creates laws and regulations to implement them

Weaknesses:

  • Can be unstable
  • Monopolistic industries may limit output and drive up prices

Strengths:

  • Mobilizes economic resources quickly, powerfully, and on a large scale
  • Able to carry out huge projects, create industrial power, and meet social goals
  • Not slowed down by lawsuits

Mixed Economies

Weaknesses:

  • Command economies "mow down other societal needs"
  • Often don't produce what people need or enough of the product, and black markets occur as a result

Examples of Places with Mixed Economies:

  • United States, United Kingdom, France, Sweden, Iceland

Characteristics:

  • Combination of market, command, and traditional economies
  • Government controls some prices
  • Seeks to have advantages of the three other economies with few disadvantages
  • Most of the world's major economies are mixed

Strengths:

  • State provides the essential services
  • Competition keeps prices low
  • Consumer's choice

Weaknesses:

  • Heavy taxes reduce incentives to work hard
  • Less efficient than private sector

Traditional Economies

Examples of Places with Traditional Economies:

  • Parts of Africa, Asia, South America, and the Middle East

Characteristics:

  • Guided by traditions
  • Based on agriculture (hunting, fishing, gathering, etc.)
  • People in traditional economies often live in poverty
  • Make things they need

Strengths:

  • Supplies sufficient amount of goods to the people
  • People know their role in society
  • Aims to give the people what they need

Weaknesses:

  • Vulnerable type of economy
  • Low standards of wealth and living conditions

Types of Economies

By: Mallory Allen

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