Tour Guide

By: Esteban

Day 1: Peru

Peru has a traditional economy. 1 advantage of having a traditional economy that it is stable and predictable. 1 disadvantage of having a traditional economy is the lack of progress leads to a lower standard of living.


Traditional Economy:

  1. Decisions are made based on habits & customs
  2. Jobs are usually handed down from parents and grandparents

Day 2 : Cuba

Cuba has a command economy. 1 advantage of having a command economy is everyone receives a perceived equal amount from the government or central authority. 1 disadvantage is a lack of consumer choices, it does not meet the wants and needs of individuals, and it has no incentive.


Command Economy:

  1. Decisions are made by the government
  2. Central planning of ownership of property and resources

Day 3: Germany

Germany has a mixed economy.


Advantages

  • Competition keeps prices low
  • Consumer choice

Disadvantages

  • is that they tend to lean more toward government control and less toward individual freedoms

A mixed economy has a greater government role than in a free market but less than in a command economy.

It's the most common economic system today