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4 types of economy

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4 types of economy

  1. 1. ECONOMY  Group 1: - Phạm Thị Linh - Phạm Hồng Dương - Trần Thị Lan - Trần Thanh Phương - Đặng Thùy Trang - Vũ Thị Thanh Xuân - Nguyễn Thị Mai
  2. 2. 4 types of economy • 1.TRADITIONAL ECONOMY • 2. FREE MARKET • 3. PLANNED ECONOMY • 4. MIXED ECONOMY
  3. 3. TRADITIONAL ECONOMY 1. DEFINITION. A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces, as well as the rules and manner of their distribution
  4. 4. 1.2. Example of traditional economies 1.Autralian aborigines
  5. 5. 1.3. Characteristics 1.Traditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering. 2.Barter and trade is often used in place of money. 3.Often, people in a traditional economy live in families or tribes. . • 4. morden technology is not used in traditional economies. • 5. custom govern economies decisions that are made • 6. physical streng and knowledge of the environment are the tools for survival.
  6. 6. 1.4. Disadvantages and advantages Advantages 1.these are peaceful societies.( war is almost unknown is these societies). 2. By the nature of her family, the community living in togetherness. Disadvantages 1. nothing in these societies ever changes because there is no technology, people depend on nature to survive 2. people have no protection from environment disasters like droughts and floods. 3. people are always in danger of hunger and disease.
  7. 7. Free market 2.1_Denifition Free market is market economy that is not controlled in any way by a government 2.2_ Free market particular + free from fluence of custom an tradition ( different from traditional market) +things are bought and sold because supply and demand ( traditional market is decisioned by custom and tradition) + free market control by itself ( traditional market : by government)
  8. 8. 2.3 Positive feature + competition => control prices and quality of produce => good for customer +technology => helps company produce more goods in less time and less effort, save time, reduce cost production => more profit 2.4 Negative feature + not exits anywhere in the world because of all governments set limits in order to control the economy.
  9. 9. PLANNED ECONOMY 3.1:DEFINITION: Planned economy is controlled by government. The government decides:what is produced, how much is produced, the methods of the production and the price.
  10. 10. 3.2:CHARACTERISTICS Market economy 1. Having problems 2. Producers always want the highest price 3. Salary mostly depends on the demand for work 4. big industries grows slowly Planned economy 1. giving solutions to solve problems 2. The government sets price 3. Salary depends on the services provide to society 4. Big industries grow quickly
  11. 11. 3.3:DRAWBACKS Problems with supply. It is difficult for government to know exactly how much to produce to meet demand .So the result is shortages
  12. 12. Definition • A mixed economy is variously defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism. A mixed economy = A market economy + A planned economy
  13. 13. 4.1Example of mixed economies others
  14. 14. 4.2Characteristics Economies mix government control and free market values in different ways let privately owned businesses exist alongside state run industries. put limits on free enterprise.
  15. 15.  let privately owned businesses exist alongside state run industries The economy becomes divided between the state sector and the private sector.  the state sector • industries that the government thinks are important and need protection from the risks of the free market.  use money that the government collects in taxes  do not need to compete with other companies However, Deregulation reorganization of the economic structure within which private businesses are allowed to compete with state-run industries.
  16. 16.  put limits on free enterprise governments may decide to  create laws to make sure companies trade honestly or to prevent monopolies  regulate methods of production to guarantee that products are safe for consumers and to protect the environment.
  17. 17. Many economists would argue that the mixed economy is the best system for consumers. Because consumers have two ways to control the economy by choosing to buy a company's goods or services choosing to give political parties their votes.

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