Questions and Answers
What are the disadvantages of a Traditional Economy?
A change of economy is discouraged and perhaps punished, and one in which the methods of production are inefficient.
What are the disadvantages of Command Economic Systems?
There is a lack of incentive to work hard or show inventiveness, as well as a lack of consumer choice.
What is the disadvantage of a Market Economy?
The concern involves those too young, too old, or too sick to work. Many fear that survival for these people would be difficult unless the government, church, family members, or other organizations stepped in to provide goods and services.
What are the advantages of living in a Traditional Economy?
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What are the advantages of a Command or Controlled Economy?
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What are the advantages of the Market or Capitalistic Economy?
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Study Notes
Disadvantages of Economic Systems
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Traditional Economy
- Change is discouraged and may lead to punishment.
- Production methods are often inefficient.
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Command Economic Systems
- Lack of incentive for hard work and creativity.
- Limited consumer choices available.
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Market Economy
- Vulnerability for individuals unable to work due to age or health (young, old, sick).
- Concerns exist about survival without support from government, family, or organizations.
Advantages of Economic Systems
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Traditional Economy
- Clear expectations for all citizens.
- Strong family and community ties foster social cohesion.
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Command or Controlled Economy
- Rapid reallocation of resources to respond to needs and changes.
-
Market or Capitalistic Economy
- Individual freedoms in choosing careers and spending.
- Right to own private property and pursue profits.
- Competition enhances variety and efficiency in goods and services, influencing pricing.
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Description
Explore the advantages and disadvantages of different economic systems through this engaging set of flashcards. You'll learn about traditional and command economies, focusing on their inefficiencies and lack of incentives, among other key concepts.
