Economic Systems And Economic System - 1961 Words

An economic system governs how a society’s resources are allocated between people, and so the question of its morality is immensely important (Winfield, et al, 2014). This essay will analyse the different economic systems by considering the two economic systems that fall on the extreme ends of the spectrum of economic systems, these being capitalism and socialism. It will further discuss the characteristics of each of these economic systems and based on these, argue that the mixed economy is the best alternative economic system. The forms of regulations that create efficiencies and those that create inefficiencies will be argued for and the importance and benefits of these regulations will be analysed. . A capitalist economic system is one that is predominantly characterised by free markets, private ownership and limited government intervention. Free markets are commonly known for their ability to achieve economic efficiency primarily through the volunteer nature of exchange and the existence of competition amongst producers (Winfield, et al, 2014). Adam Smith believed that the goal of every economic system should be to achieve economic efficiency through the mechanisms of productive and allocative efficiency. Productive efficiency can be defined as producing goods and services for the lowest cost while allocative efficiency is more concerned with the distribution and allocation of resources in the economy to where they are valued most and can attain maximum satisfaction forShow MoreRelatedEconomic Systems And The Economic System808 Words   |  4 Pagessocieties must choose one of these systems, we must proceed deeper into detail on how these economies function. The oldest and simplest of the economic systems is the traditional economy. It relies on habit, custom, or ritual to answer the three key economic questions. Due to the unembellished nature of the traditional economy, there is little room for innovation or change. It revolves around the family unit and is divided along gender lines. Traditional systems are usually found in communitiesRead MoreEconomic System And Economic Systems910 Words   |  4 Pagesdifferent economic system,which are known as centrally planned economy, mixed economy, and market economy. I will also be explaining why internationalizing firms should be aware of the differences between all three economic systems and what roles should the government be taking in the free market systems. Before I begin defining the different economic systems I would like to first explain what an economic system is. Every country differs in what economic system is being used. An economic system is a systemRead MoreEconomic System s And Economic System2099 Words   |  9 PagesEconomic system â€Å"Economic system is that it consists of those situations which a given people or nation has nations has chosen or accepted as the means through which resources are utilized for the satisfaction of human wants.† (studylecturenotes.com, 2016) Economic system allows countries to follow procedure to produce goods using resources available in the countries. It allows the countries to know how much and for whom to produce. There are different types of economic systems in different countriesRead MoreEconomic System1923 Words   |  8 PagesMicroeconomics Paper: Economic systems Yang Cong Professor Memmos Aug 1st, 2012 Table of Contents 1, Introduction of economic systems 2, the analysis of capitalism 3, Example of capitalism: the U.S. 4, the analysis of socialism 5, Example of socialism: China 6, the analysis of communism 7, Example of communism: North Korea 8, my favorite one is socialism 9, Conclusion There are three main economic systems in the world which are capitalism, socialism and communism. Nowadays, mostRead MoreEconomic Systems1122 Words   |  5 PagesIntroduction Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectationsRead MoreMixed Economic Systems760 Words   |  4 PagesEconomic system of a country Identify and evaluate the economic system that Malaysia is adopting. Discuss the rationale of Malaysia’s economic system in terms of utility maximisation and pricing mechanism for distribution of goods and services. An economic system is the combination of the various agencies, and entities that provide the economic structure that defines the social community. Malaysia has adopting mixed economic systems. Mixed economic system is an economy where there is moreRead MoreAssignment on Economic System1839 Words   |  8 PagesAn economic system is the combination of the various agencies, entities (or even sectors as described by some authors) that provide the economic structure that defines the social community. These agencies are joined by lines of trade and exchange along which goods, money etc. are continuously flowing. An example of such a system for a closed economy is shown in the flow-diagram. The economics system involves production, allocation of economic inputs, distribution of economic outputs, landlords andRead MoreMoral Economic System537 Words   |  2 PagesIntroduction Creating a moral economic system should be the ultimate goal of every society. A moral economy is one that is founded on the principles of justice, fairness and goodness. A moral economic system ensures equitable allocation of resources which are scarce in nature and configures markets to ensure that they run fairy. The end results are to realize a stable economy that is free from exploitation, political insecurity and wars. A moral economic system fosters peace and satisfaction amongRead MorePolitical and Economic System1250 Words   |  5 PagesSpain Analysis of the Political and Economic Systems Table of Contents I. Introduction (abstract) II. Political System a. Type of Political System b. Structure of the Government c. Identify a current law/policy law d. Impact on society III. Economic System a. Type of economic system b. Identify a current economic issue c. Government role in address the issue d. Impact on society IV. Compare Contract a. Economic issue country of origin V. Conclusion Read MoreEconomic Systems Essay1117 Words   |  5 PagesIntroduction Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations