Discovering

different
Economic
System

LT1: MACROECONOMICS_B

MIGUEL JOSHUA B. VILLANUEVA

TRADITIONAL
From the word itself, traditional; it pertains to the way the economic system
runs. It relies its economic system and fundamental economic judgments on
the local customs, traditions, and beliefs. The members of the Traditional
Economic System are using the barter system as means of exchanging goods
and products. Furthermore, countries that belonged to this economic system
focused mainly on agrarian and fishing.

Countries using this Economic System: Underdeveloped and Third world

countries, such as Belarus, the pygmies of Congo, Eskimos.

Advantage: People have specific roles to play in their economy.

Disadvantage: Technological advancements are being disregarded,

discouraging improvement in the production and distribution of goods.

ECONOMY
COMMAND
For the Command Economic System, it is the government that centralizes all
the economic decisions on one's country. The government has collective
control of the land, including its production. It uses national laws, commands,
and the power of the administration as a guide to operating its economy. This
type of economic system is also linked to communism.

Countries with this Economic System: Belarus, Iran, and North Korea.

Advantage: There is Unity when it comes to reaching economic goals.

Disadvantage: Inefficient way of producing products because of lack in

looking at their consumer reports. They tend to listen to the government
rather than its actual consumers.

ECONOMY
MARKET
Market Economic System is a type of economy where all the resources are
being owned by the people and the businesses, privately. There is no
government intervention for all the business activities inside the economy, and
at the same time profit is the king in this economy. Thus businesses/producers
have total control over what and how many products they produce.

Countries with this Economic System: Hong Kong, Singapore, and

Switzerland.

Advantage: Efficient use of resources is being observed. Since the firm's goal
in increasing its profits is to lower its cost production and efficient execution.

Disadvantage: Unemployment. Technological advancements in terms of

production (to minimize costs) will replace the need for manual labor.

ECONOMY
MIXED
The Mixed Economic System is the combination of Command, Traditional, and
Market Economy. We could see that both the private sector and the
government influence economic activities. There are few government
interventions to regulate the system, and at the same time, these regulations
are there to protect the private business sector. The Traditional Economic
System can also be seen as a way to preserve the rights and culture of the
society.

Countries with this Economic System: USA, Japan, and the Philippines

The advantages and disadvantages of the Traditional, Command and the

Market Economic System are being shared with Mixed Economic System.

ECONOMY
Type of Economy that exist in the Philipines

The Philippines as a country belongs to the Mixed

Economic System. One of the reasons behind this is that we
follow the economic structure of one of our allies, the
United States of America. But of course, we can support
this point through the evidence presented here in our
country. We previously mentioned that the Mixed Economic
System is the combination of the three economic systems,
namely the Traditional, Command, and Market Economy.
For Traditional Economic System, it is still present in the
agricultural sector, particularly in indigent areas. It is no
secret that the, despite being a developing country, the
Philippines is still an agrarian. Despite being leaned
towards capitalism, the Philippines government is still
present in the economic sector, wherein some corporations
are government-owned. There are government agencies
that have the executive power to influence the market and
its economy. Of course, then we can see the influence of
the Market Economic System, whereas the private sector
has the freedom (with some restrictions from the
Philippine government) to decide for their productions and
business-related transactions.