All Around the World
By: Crystal Johnson
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
*Total private ownership of property and all resources
*Profit motivates people to work hard
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
*Competition helps keep prices down and quality high
*consumers and private businesses may have few protections
*need money to make money
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
*North Korea also uses this type of economy
*Central planning of ownership of property and resources
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
*Lack of consumer choices
*Does not meet the wants and needs of individuals
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
*Most common economic system
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
*Some businesses may feel the government is too involved