Page 9 - FLIP BOOK ECONOMIC PROBLEMS AND HOW TO SOLVE THEM BY SELA PUTRI AGUSTIANI

quality, productivity, and even find it difficult to make promos because they avoid losses. In
addition, countries can experience economic recession or crisis.

Command Economic System

The command economic system is the opposite of the liberal economic system, Brainies. The
government controls the natural resources and capital to drive the economy in a country. They
decide what goods to produce, how to distribute them, the selling price, and even employment.
The goal of this economic system is to fulfill the common needs. The command economic
system is also referred to as the ended / guided / socialist economic system. An example of a
country that implements a command economic system is North Korea.

Characteristics of the Command Economic System:

 Resources are controlled by the government, so people cannot take them freely.
 All economic activities are regulated by the government.
 The role of society is only as an executor.

Pros and Cons of a Command Economy System

Countries that implement a command economic system do seem authoritarian, but these
countries rarely experience economic crises, because the government tries to keep the economy
stable. The income of the community is evenly distributed, because the government has arranged
the distribution of work for everyone.Surely you can guess what are the disadvantages of the
command economic system? That's right! People are not given the space to innovate because
everything is regulated by the government. The quality of goods is not optimal, private property
rights are not recognized, and policies tend to be coercive.

 Mixed Economic System

A mixed economic system is a combination of the advantages of market and command economic
systems. This means that the government and its people have a role in solving economic
problems. Examples of countries that use a mixed economic system are Brazil, Egypt, and
France.

Characteristics of a Mixed Economic System:

 The government, the private sector, or the people work together to solve
economic problems.
 The government is in charge of controlling vital resources (forests, air, electricity,
etc.) owned by the country.
 People are given the freedom to decide what goods to produce, the method of
production, and the price, with supervision from the government.