All Around the World

By: Crystal Johnson

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Peru is known as a Free Market Economy

Things to Know

* Choice gives consumers options
*Total private ownership of property and all resources
*Profit motivates people to work hard
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Advantages/ Disadvantages

*Total private ownership of properties and all resources
*Competition helps keep prices down and quality high

*consumers and private businesses may have few protections
*need money to make money
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Cuba is known as a Command Economy

Things To Know

*Decisions are made by the government (centrally planned)
*North Korea also uses this type of economy
*Central planning of ownership of property and resources
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Advantages/ Disadvanteges

*Everyone receives a perceived equal amount from the government or central authority

*Lack of consumer choices
*Does not meet the wants and needs of individuals
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Gemany is known as a Mixed economy

Things To Know

*Greater government role than in a free market but less than in a command economy
*Most common economic system
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Advantages/ Disadvantages

*Government is the watchdog so consumers are not taken advantage of and no businesses become monopolies
*Some businesses may feel the government is too involved