Question

Economic system: 1,capitalist economy 2,command economy 3,mixed economy Define and write 1characterstic 2advantage 3disadvantage

Answer 1

Answer and Explanation:

The capitalist economy is one that is based mainly on private property and the use of the means of production with extremely profitable objectives. The capitalist economy focuses on high-scale production and strong competition between institutions. One of the advantages of this type of economy is that it encourages technological innovation and allows a large number of product options for consumers. The downside is that this type of economy encourages the accumulation of wealth, dishonest competition and social inequality.

The command economy can be characterized as the economic system in which the government determines how the production of all economic sectors will be done, which products will be produced and how much of each product will be produced. This type of economy is highly regulated and controlled by the government. An advantage of this type of economy is the high investment in the production of products and services, which guarantees low prices and low unemployment. The downside is that this production is often inefficient and has supply shortages. We can also mention that this type of economy encourages the existence of monopolies, which limits the options of consumers and can encourage inefficiency in labor rights.

Mixed economy is one that combines the characteristics of economic economy and command economy. In this case, the government controls all production in the country, but encourages profit and the use of private property. The advantage of this type of economy is the application of large productive investment, with the existence of controlled competition and strong supply. The disadvantage is that there can be an exploitation of the worker and the consumer, due to the stimulation of maximum profit linked to maximum production.