Economic Systems And Economic System Essay

1054 Words Sep 7th, 2014 5 Pages
When hearing the word “economy” what comes to mind? Most likely, America or Capitalism right? Well, to face facts, there is certainly more than just America’s Capitalistic society! There are actually four different main economic systems in place today, along with a couple of sub-economic systems such as socialism and capitalism. The four economic systems in place today are; traditional, command, mixed/dual and market (Bovee). What does all of this mean? Firstly, a traditional economic system is exactly what it sounds like; traditional. This is the oldest economic system and produces products and services based on the society’s beliefs, customs, religions, and traditions. Areas that use this type of economic system are generally third worldly countries or regions such as Haiti, and do not enjoy the things westernized countries take for granted (Bovee). The second type of economic system: a command system, such as the one China has employed, is one in which a large portion of the economy is controlled by a single, centralized power (Bovee). This controlling power or being is most often the government. This type of economy, despite its disadvantages could actually allow an advantageous creation of a healthy supply of resources, in turn allowing its consumers to be rewarded with more affordable pricing on valuable goods and services. Another advantage is that due to the government having control and wishing to grow upon its populace, there is generally no shortage of jobs…

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