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Disadvantages Of Economic System

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An economic system of a particular country usually has a huge impact on the country itself. Economic systems consist of many things, some of them include the production and the division of goods and consumption of limited goods and services by different agents in given locations. The agents can be individuals, business of any size and even the government. Economic system allow the regulation of goods and services.The four factors of production are land , labor, capital and entrepreneurship. There are four types of economic systems that are used around the world, but before we get into that we need to first understand on what economic systems actually are,economic systems can be simply defined as a mean in which countries and governments use to trade different goods …show more content…

Like any other economic system traditional economic system does come with advantages and disadvantages. In a traditional system everything is very predictable, everyone knows what they are meant to do and they do as so. Changes aren 't encouraged. Due to this traditional systems aren 't dynamic and extreme. And lack in mobility and doesn 't satisfy individuals financially. But there are some advantages such as the there will not be drastic changes in the behavior of the economy. People know the routine as to who to exactly trade and what to accept from that trade. A huge amount of the world still practices the traditional economic system. Usually second or third world and rural countries.Even though they are tied down by tradition they do in fact collaborate and engage with other economies to buy , sell and trade. It 's very unusual to see surplus in this type of economy.This is due to the factor that the rural countries who practice this type of economy does not have enough resources to produce the amount of supplies to the point where it reaches a

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