GROUP: 1
GRADE: 10 BUSINESS
SUBJECT: ECONOMICS
TOPIC: ECONOMIC SYSTEM
1. EXPLANIN WHAT IS ECONOMIC SYSTEM
Economic system is the way in which society organizes for the production
and distribution for goods and services to satisfy the needs of its people.
2. INDENTIFY THE 4 MAIN ECOMOMIC SYSTEM
The four main economic system is;
The planned economy
The free market economy
The mixed economy
The subsistence economy
3. DESCRIBE THE ADVANTAGE AND DISADVANTAGE OF EACH ECONOMIC
SYSTEM
THE PLANNED ECONOMY
ADVANTAGES
Wastage of resources would be reduced since the state makes the
decision as to what is produced, and directs the resources into these
areas.
Income is more evenly distributed.
DISADVANTAGES
Conflicts of interest arise because what the country needs may not
be what the people want.
The government protects workers by setting minimum wage.
THE FREE MARKET ECONOMY
ADVANTAGE
Decision-making is not controlled, so there is greater participation in
the decision on what is to be produced to satisfy the needs of the
consumers.
A large variety of goods and services are produced to satisfy the
needs of the consumer.
DISADVANTAGE
Consumers can be exploited through the imposition of high prices
for essential goods if there is insufficient competition among
producers or government regulation of business.
The system leads to great inequalities as the rich get richer and
the poor get poorer.
THE MIXED ECONOMY
ADVANTAGE
The government provides subsidies for businesses to encourage
them to hire workers.
The government provides incentives for people to work.
DISADVANTAGE
Too much government regulations may dampen the free
enterprise sprit.
Some state owed industries are allowed to operate inefficiently
thus wasting resources.
THE SUBSISTENCE ECONOMY
ADVANTAGE
Gives people food security
Environmentally friendly
DISADVANTAGE
Discourage new ideas
Relies on natural resources
4. GIVE ONE EXAMPLE OF A COUNTRY THAT UTILIZES EACH SYSTEM
THE FREE MARKET ECONMOY
Guyana
THE PLANNED ECONOMY
North Korea
THE MIXED ECONOMY
United Kingdom
THE SUBSISTENCE ECONOMY
Canada
