Economics SSS1 First Term

WEEK 11

Economic system – Socialism, Mixed Economy  

Performance Objectives

Student should be able to:

1. Describe different economic system and how they solve their economic problems.
2. Distinguish among the systems.

Content

SOCIALISM OR PLANNED ECONOMY

A planned economy is one in which the government decides how the factors of production are used. For example, the government determines who owns the businesses, who buys and sells to whom, and who makes the ultimate decisions regarding businesses, including who works for them. In a planned economy, also known as a centralized economy, controlled economy or command economy, the central government has planners who make all the decisions. The closest examples to this type of economy today are North Korea and Cuba (to a lesser extent).

Advantages of socialism

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