Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

The Four Economic Systems

The Four Economic Systems

Topic

The roles of property rights, competition, and profit in a traditional, market, command, and mixed economic system.

By: Marina Woodward

Traditional:

Traditional

  • In a traditional economic system, property rights are static, meaning that individuals don’t enjoy much financial or occupational mobility.
  • Since there is no need for money, many individuals use trading as a way to get what they need instead of buying it.
  • There is little need for trade since there is everything that is consumed and produced is the same.

Market

  • With private property, individuals can decide to either buy, sell, or lease their property with a legally-binding contract which gives them the right to profit from their ownership.
  • Competition in a market economy is kept low because of the pressure of competitive force.
  • “Competitors see they can enhance their profit by producing it, adding to supply.” (Kimberly Amadeo, The Balance)

Market

Command

Command

  • “The government creates a central economic plan.” (Kimberly Amadeo, The Balance)
  • Its goal is to supply enough food, housing, and other basics to meet the needs of everyone in the country.
  • The market economy owns monopoly businesses, which means that there are industries that are deemed essential for the goals of the economy such as finance, automotive, and utilities that will receive no competition in those sectors.

Mixed

Mixed

  • From the market economy, a mixed economy takes the rights to private property, free market and the laws of supply and demand, and the motivation of self-interest.
  • In more strategic areas, a mixed economy uses some of the characteristics of a traditional economy such as “fund [for] royalty or [investing] in hunting and fishing.” (Kimberly Amadeo, The Balance).
Learn more about creating dynamic, engaging presentations with Prezi