A first type of economy system is traditional economicsystem.
Traditional economic system is a system that related to traditions,customs, history and time honoured beliefs help shape the goods and services,as well as the rules and manner of their distribution. It usually not capableof generating the same amount of output that the other types of economiesproduces. And it usually depends on the agriculture field. Besides that,command economic system is the next economic system. For this economic system,the government controls the large part of the economy activities.
And it also knownas planned economic system because most of the production decisions will bemade by the government and there is no any of free market in this system. Furthermore,the following economic system is market economic system. This system relies onthe free markets and it does not allow any kind of government involvement inthe economy. For this system, the entire of this system is regulated by the authoritypeople and the laws of supply and demand, the government does not control anyrelevant economic segments.
Lastly, themixed economic system is the also one of the economy system. For this system,it is a combination of the market economic system and the command economicsystem. Most of the industries that involved in this system are privately ownedwhereas a small number of public utilities and the services will still remainin government controls. This mixed economic system can neither the private northe government sector alone can maintain the economy, they both play a criticalpart in the success of this system. Every economicsystem have its own advantages and disadvantages. The first economic systemthat I wanted to share is the traditional economic system. I will talk aboutthe advantages then only follow by the disadvantages. Traditional economicsystem, everyone knows that they contribute towards the production, such asfarmers, hunters and also wearer.
For this economic system, there is somelittle friction between their society members because the traditional andcustoms dictate the distribution of the resources but the society membersunderstand that what are they likely to receive. Besides that, this system hasits own disadvantages. They limit population of growth because that they arevulnerable to the market economies and the command economies because thissociety consume the traditional economies natural resources depends on the wagewar. The nexteconomic system is command economic system.
Command economic system does haveits own advantages also. The resources in this economic system are quickly andeffectively mobilized on a large scale. And its industrial power is create andmassive projects complete while attaining the imperative social goals. Not onlythese, command economic system is able to transform the society to conform tothe government’s vision for the society or even to the country. However, thiseconomic system have its disadvantages also. This will cause the black marketexplodes in a command economic system. And it due to the government restrictions,goods and the services are not offered in this economy so that they started tobe offered in the black market. Besides that, sometimes the amount of the goodsthat produced are not balanced.
This is because sometimes one product will bemass produce so that another will not have enough to support the economicneeds. Sometimes the exporting goods will be problematic because they have difficultyfor the controlling entity to determine which products and prices will be mostsuccessful within the market. Furthermore,the advantages for the market economic system are the competition will leads tothe efficiency. This is because the businesses that have fewer costs are morecompetitive and it makes more money. Besides that, some businesses they try todifferentiate themselves so they let a large variety of goods and services availablein the market. However, market economic system has its disadvantages also. Thehealth and safety cost money so that they love to reduce the profits and thiscause the poor working conditions.
The poor working conditions can result dueto the lack of government regulations. Last but notleast, the next economic system is mixed economic system. For this system, ithas the power to creates a balance in regional developments because of the planningcommission of a country will be able to create policies for the improvements ofevery region. And not only that, the government would also try to develop eachsector of the population.
The next disadvantages is it creates a quick economicdevelopment. In mixed economic system, the economic development will be quickeris because both the public and the private sectors can operate equally. So, afterlisting the goods of this economic system, we can now going to talk about itsdisadvantages. Mixed economic system will brings about the fear ofnationalization. Because of the government have the ability to own andnationalize any industry while the private and public sectors coexists.