Tag Archives: economy graph

See the below image for the Centrally planned economy diagram. The government of a centrally planned economy decides where and when production and investment will be directed.

What is a ‘Centrally Planned Economy’. Unlike a market economy — in which private citizens and business owners make production decisions — a centrally planned economy controls what is produced and the distribution and use of resources. State-owned enterprises undertake the production of goods and services.

Central planning is also referred to as a ‘Command economy’ or ‘Communist economy.’ WIth Central planning, the theory is that the government will take ownership of the means of production and run the economy in the interest of workers.

See the below image for the Circular flow of economy diagram. Circular Flow Model of Economy. Circular flow model is the basic economic model and it describes the flow of money and products throughout the economy in a very simplified manner.

The most common form of this model shows the circular flow of income between the household sector and the business sector. Between the two are the product market and the resource market. Households purchase goods and services, which businesses provide through the product market.

They are actively engaged in three economic activities of production, consumption and exchange of goods and services. These decision-makers act and react in such a manner that all economic activities move in a circular flow. First, we discuss their nature and role in decision-making. Households are consumers.

See the below image for the US states economy comparison diagram. For example: America’s largest state economy is California, which produced nearly $3 trillion of economic output in 2018, more than the United Kingdom’s GDP last year of $2.8 trillion. Consider this: California has a labor force of 19.6 million compared to the labor force in the UK of 34 million ( World Bank data here ).

The first map shows seven areas of the US that have the same GDP as entire countries. It shows that California has the same size economy as France. Both have nearly $2.54 trillion in output.

The economy of the north-east states – Massachusetts and Pennsylvania up to Maine and including New York – amounts to $4.2 trillion, similar to Japan’s at $4.12 trillion. Florida and Alabama, with $1.087 trillion in GDP, almost match Mexico at $1.14 trillion, while Texas’s economy, $1.59 trillion, is close to that of Brazil at $1.74 trillion.