Economic and Social Goals

By Keviana Poole and Jamie Draughn

  • Market Economy- Economy based on private ownership and the determination of prices by supply and demand

Example-Hong Kong

Advantages- Friendly competition

Disadvantage-Investment priorities and wealth becomes distorted

  • Command Economy-Economy in which the government makes all economic decision
Example-North Korea

Advantages: Monopolizing is not allowed

Disadvantages: Freedom is restricted

  • Mixed Economy-and economic system combining private and public enterprise Example-Sweden

Advantages:State provides essential services

Disadvantages: Heavy taxes reduces incentives to work hard or make profits.

Compare and Contrast of the Economies

In a command economy, the government determines how the three basic economic questions (what to make, how to make it, who to make it for) will be answered. So, economic planning is done by the government.

By contrast, in a traditional economy, the questions are answered by tradition -- people do things the way they always have. So people make what their parents made and make them in the same ways.

A third kind of economy is a market economy where consumers decide (through their buying choices) how the three questions will be answered. So what consumers want gets made and it gets made in the way that consumers want

Economic systems (for Ytube).mp4

Ratings on Economic Goals 🌟🌟🌟🌟🌟

1.Economic Freedom=5; because we can buy and sell on our own without any company

2.Economic Efficiency=3.5; because we are not efficient in all areas

3. Economic Equity=4;the u.s. make laws to make sure there is equal treatment

4.Economic Security=5;many government programs keep citizens secure of their home and money.