Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
ECONOMICS
ANALYSIS OF CAPITALISTIC ,
SOCIALISTIC AND MIXED ECOMNOMY
Presented By:-
(NR 16069)Milan Kagarana
(NR 16118)Ruja...
2 | P a g e
Economic System
 Economics - Economics is the socialscience that analyzes the production,
distribution and co...
3 | P a g e
 Economic System is the system of production, distribution and
consumption
 An economic systemis a mechanism...
4 | P a g e
 Free flow of resources
 People strive for self interest in free market
 Beneficial for society
 Based on ...
5 | P a g e
 Benefits of Capitalism
 In years 1000–1820 world economy grew six-fold, in years 1820–1998
world economy gr...
6 | P a g e
 Collective ownership and democratic control of the material means of
production by the workers and the peopl...
7 | P a g e
Recently, the Chinese economy has become more geared towards
capitalism, but is still officially socialist. Li...
8 | P a g e
mechanismare supplemented by someform of partial planning, is to be
described as a mixed economy.
 This syste...
9 | P a g e
 Features
 Resources are owned both by the governmentas well as private
individuals. i.e. co-existence of bo...
10 | P a g e
Upcoming SlideShare
Loading in …5
×
Upcoming SlideShare
Economic Systems and Business Impact
Next
Download to read offline and view in fullscreen.

16

Share

Download to read offline

Economics system.pdf By.Milan Kagarana

Download to read offline

ECONOMICS
ANALYSIS OF CAPITALISTIC , SOCIALISTIC AND MIXED ECOMNOMY
by. Milan Kagarana

Related Books

Free with a 30 day trial from Scribd

See all

Economics system.pdf By.Milan Kagarana

  1. 1. ECONOMICS ANALYSIS OF CAPITALISTIC , SOCIALISTIC AND MIXED ECOMNOMY Presented By:- (NR 16069)Milan Kagarana (NR 16118)Rujal Patel (NR 16180)Pooja Thakkar (NR 16015)Dipak Bhavsar (NR 16015)Harsh Shah (BETA CLASS)
  2. 2. 2 | P a g e Economic System  Economics - Economics is the socialscience that analyzes the production, distribution and consumption of goods & services.  Economic System is the system of production, distribution and consumption  An economic systemis a mechanism (also defined as system or social institution) which deals with the production, distribution and consumption of goods and services in a particular society.  The economic systemis composed of people, institutions and their relationships. Itaddresses theproblems of economics like the allocation of the resources.  Economic System : An organized way in which a state or nation allocates its resources and distributes goods and services in the national community.  Types:  Capitalism (Market Economy)  Socialism (Planned economy)  Mixed (Capitalism + Socialism) Economics - Economics is the social science that analyzes the production, distribution and consumption of goods & services.
  3. 3. 3 | P a g e  Economic System is the system of production, distribution and consumption  An economic systemis a mechanism (also defined as system or social institution) which deals with the production, distribution and consumption of goods and services in a particular society.  The economic systemis composed of people, institutions and their relationships. Itaddresses theproblems of economics like the allocation of the resources.  Economic System : An organized way in which a state or nation allocates its resources and distributes goods and services in the national community.  There are three types of Economy  Capitalism (Market Economy)  Socialism (Planned economy)  Mixed (Capitalism + Socialism  CAPITALISM  Capitalism is an economic system in which the means of production are privately owned and operated for profit, usually in competitive markets.  In other words An economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations.  Adam Smith (Father of Economics) (Book: Wealth of Nations).  Subjectto certain restrictions, individuals (alone or with others) are free to decide whereto invest, what to produceor sell, and whatprices to charge. There is no natural limit to the range of their efforts in terms of assets, sales, and profits; or the number of customers, employees, and investors; or whether they operate in local, regional, national, or international markets.  Capitalist System  Centralized to Decentralized system  Authoritarianismto representative democracy
  4. 4. 4 | P a g e  Free flow of resources  People strive for self interest in free market  Beneficial for society  Based on Demand & Supply Forces  Monopoly to Competitiveness  Self sufficiency to Internationalinterdependence  Producer interest to customer power  Examples  United States  Canada  United Kingdom  Australia  Japan  Austria  Ireland  Sweden  Switzerland  Israel  United States  Americans are known to be risk takers and capital makers. In the US it is possibleto begin a business of humble means and expand it to grow into a conglomerate business model for people wanting to start a new business.  Capitalism allows private ownership to spur production of goods and allows the private owner to keep and track profits for what sells.
  5. 5. 5 | P a g e  Benefits of Capitalism  In years 1000–1820 world economy grew six-fold, in years 1820–1998 world economy grew 50-fold  Provides Choice to customers  Provides valuablegoods and services  Capitalism actively rewards positivetraits like hard work  Similarly, it punishes negative traits such as laziness and theft  Narrows thegap between common person and wealthy  Provides opportunity to realize dreams and desires  Capitalist societies usually do not havelarge black markets  Build on democracy  Social Good  Major limitations/ Criticism:  Downfallof work ethics  Free Market + Self Interest  Accumulation of wealth  Encourages inequality in a society  Business lobbying with government  Monopolistic tendency  Human resourceexploitation  Results in great disparities between income of people owning the capital resources and others  SOCIALISM
  6. 6. 6 | P a g e  Collective ownership and democratic control of the material means of production by the workers and the people  Socialism is a term applied to an economic system in which property is held in common and not individually, and relationships are governed by a political hierarchy. Common ownership doesn'tmean decisions are made collectively, however. Instead, individuals in positions of authority make decisions in the name of the collective group.  Socialists argue that socialism would allow for wealth to be distributed based on how much one contributes to society, as opposed to how much capital one holds.  A primary goal of socialism is socialequality and a distribution of Wealth based on one’s contribution to society and an economic arrangement that would servethe interests of society as a whole.  Socialism as we know it today, mostcommonly refers to "market socialism," which involves individual marketexchanges organized by collective planning.  Differencebetween socialism and communism is that communists directly opposethe concept of capitalism, an economic system in which production is controlled by private interests. Socialists, on the other hand, believe socialismcan exist within a capitalist society.  Examples  China  Denmark  Finland  Netherlands  Canada  Sweden  Norway  Ireland  China  In China the government manages and controls the economy. Many of the domestic companies are owned and run by the government.
  7. 7. 7 | P a g e Recently, the Chinese economy has become more geared towards capitalism, but is still officially socialist. Life in China remains relatively less stressfuland more relaxed than life in capitalist countries like America.  Features of Socialism  Social Ownership of means of production  Existence of public sector  Decisive role of Economic Planning  Production guided by Social Benefits  Abolition of exploitation of labor  Benefits of Socialism  Better salaries  Stable Environment  Eliminates poverty  Better Products  Fulfills survivalneed  Opportunity for citizens to explore non-economically-productivepursuits  Limits of Socialism  Distorted price signals  Suppression of economic democracy  Slow Technological advancements  Minimize self management  Reduced incentives  MIXED ECONOMY  Any economy in which private corporateenterprises and public sector enterprises exist side-by-side, and decisions taken through market
  8. 8. 8 | P a g e mechanismare supplemented by someform of partial planning, is to be described as a mixed economy.  This systemovercomes the disadvantages of both the market and planned economic systems.  Provides a clear demarcation of the boundaries of public sector and private sector so that the coresector and strategic sectors are invariably in the public sector.  The government intervenes to prevent undue concentration of economic power, and monopolistic and restrictivetrade practices  The rights of the individual are respected and protected subjectonly to the requirements of public law and order and morality  Examples  India  Iceland  France  Cuba  Russia  Germany  South Korea  Hong Kong  India  In a mixed economy, privateand public sectors go side by side. The governmentdirects economic activity in some socially important areas of the economy, the restbeing left to the price mechanism to operate.  Before Independence, Indian economy was a ‘laissez faire’ economy. But post-independence, she adopted the mixed economy system.  Thus, it is clear fromthe following arguments that our economy is a mixed economy.
  9. 9. 9 | P a g e  Features  Resources are owned both by the governmentas well as private individuals. i.e. co-existence of both public sector and private sector.  Market forces prevailbut are closely monitored by the government.  Monopolies may be existing but under close supervision of the government.  Advantages  Producers and consumer havesovereignty to choosewhat to produce and whatto consumebut production and consumption of harmful goods and services may be stopped by the government.  As compared to Market economy, a mixed economy may have less income inequality due to the role played by the government.  A mixed economy represents an achievable balance between individual initiative and social goals.  Limitations  One disadvantageof mixed economies is that they tend to lean more toward governmentcontrol and less toward individual freedoms.  While mostmodern forms of governmentare consistentwith some form of mixed economy, the mixed economy is mostcommonly associated with social democratic parties or nations run by social democratic governments.  Some critics of contemporary socialdemocracy argue that when social democracy abandoned Marxism it also abandoned socialism and has become, in effect, a liberal capitalist movement.  Marxian socialists arguethat becausesocial democratic programs retain the capitalist mode of production they also retain the fundamental issues of capitalism, including cyclical fluctuations, exploitation and alienation. THANK YOU
  10. 10. 10 | P a g e
  • RubyRyne

    Mar. 10, 2020
  • SIDDHARDHAG

    Mar. 3, 2020
  • PushpaLathaM7

    Feb. 8, 2020
  • MOHAMEDSALLIEUJALLOH

    Dec. 4, 2019
  • PriyaSingh729

    Sep. 19, 2019
  • AlinaKhan54

    Feb. 4, 2019
  • HarshitaSai

    Dec. 23, 2018
  • KarthikKs49

    Nov. 9, 2018
  • ShahzadAhmad5

    Jun. 6, 2018
  • NellieWangare

    May. 23, 2018
  • Sandeepkaur369

    May. 3, 2018
  • kaye_alforque

    Apr. 18, 2018
  • DaniyalNazir1

    Mar. 4, 2018
  • sourabhpathak5

    Feb. 24, 2018
  • kingmaker14

    Dec. 25, 2017
  • ArunKumar5469

    Dec. 5, 2017

ECONOMICS ANALYSIS OF CAPITALISTIC , SOCIALISTIC AND MIXED ECOMNOMY by. Milan Kagarana

Views

Total views

16,369

On Slideshare

0

From embeds

0

Number of embeds

2

Actions

Downloads

151

Shares

0

Comments

0

Likes

16

×