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.
- Decisions are made based on habits & customs
- 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.
- Decisions are made by the government
- Central planning of ownership of property and resources
Day 3: Germany
Germany has a mixed economy.
- Competition keeps prices low
- Consumer choice
- 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