Assignment On Economic System

Assignment on Economic System
An 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 and land availability, households (earnings and expenditure consumption of goods and
services in an economy), capitalists, banks (finance institutions) and government. It is a set of institutions and their various social relations.
The Four main...show more content...
Disadvantages of Market Economic System:
i) Since market does not exist for some resources, only some environmental resources might be used and exchanged in the society. ii) The long cycle
of production of some crops (e.g. timber and tree crops) does not allow for rapid adjustment of demand and supply so gluts and shortages often follow in
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Economic Systems
Introduction
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 of this type of economy is that all major decisions that related to the construction or production,
distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a...show
more content...
Prices also have the function to allocate and distribute a country's resources. Market leads to complete effectiveness bringing about the best
possible distribution of a country's resources in a perfect world. This would only happen in a state of equilibrium and there is a unique price for
every commodity. But in a realistic world which is imperfect by nature, prices are never at equilibrium and very unstable depending upon the
vagaries of the market forces. This generally harms people living below the poverty line. It is impossible for them to pay high prices in cases of
demand shortage. Thus, the free market model is not a viable option in developing countries which has a large number of poor. Besides, producers are
aim to minimize profit and maximize rent of production. Examples of countries that are using this economy system are Hong Kong, USA, and UK.
Many developing countries like India and China are moving towards totally free–market economy. The command economy is government directed. The
market forces have very little say in such an economy. There is no private property. On the other hand, a command economy aims at using all available
resources for developing either in advertising or marketing. In order to ensure that the required inputs are available, the state would probably conduct
some form of input–output analysis. All industries act as the input from other industries and the producers act as the

Economic Systems And Economic System
Economic system
"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 countries and they all have their different regulations
according to their planned economic system. There are two different types of market: Free Market and Planned market.
Free market
"An economic system in which prices are determined by unrestricted competition between privately owned businesses" (oxforddictionaries.com, 2016)
The free market is the economic system where the government has no or few restrictions on buying and selling goods from different countries. There
are no tariffs or regulation processes being determined for trades. This is a very good economy to start a business has it has no interest rate, exchange
rate or any force to stop them exchange their commodities in order to trade with different countries. The free market allows the individual or group of
people running the business to make decision by themselves and allow that ease to trade with different countries at fair exchange schemes.
UK as Free Market:
"The UK is the 9th Largest export economy in the

What Is Economic System
Table of Content
Table of Content1
TASK 12
a)Explanation on economics system attempt to allocate resources effectively.2
b)Assessment on the impact of fiscal and monetary policy on business organisation and their activities.9
c)Explain Malaysian competition policy and other regulation that may impact company.15
TASK 217
a)Explanation on how market structures determine pricing and output decision of business.17
b)Illustration on the way in which market forces shape organisational responses.20
c)Judgement on how business and cultural environments shape the behaviour of your organisation.21
Conclusion22
REFERENCES23
TASK 1
a) Explanation on economics system attempt to allocate resources effectively.
What is economic...show more content...
(Economy Watch)
Every economy has their own characteristic. For free market is there are many economic freedoms, there is competition among businesses, competition
determines price which increase the quality of the product, economic decisions are made by the basic principles of supply and demand, and profit is
the motive for increasing work rather than quotas.
Mixed economy
Mixed economy is combination from planned and free market economy. This economy system allows the private company use their capital. This
economy system allows the government to interfere to the market. The resources are allocated from both the government and the private sector. In this
system the freedom in the economic activities are influenced by the Government 's regulation and licensing policies.

The example of the country that implemented this economy system is Iceland, Sweden, France, and United Kingdom.
There are several advantages and disadvantages of the mixed economy system. The advantages are most business and industry can be left to private
firms. This is because private firms tend to be more efficient than government controlled firms because they have a profit incentive to cut costs and be
innovative. Second is government can pursue policies to provide macro–economic stability.
The

Major Economic System Analysis
James Madison, one of the founders of our country, said, "A good government implies two things: first, fidelity to the object of government, which is
the happiness of the people; secondly, a knowledge of the means by which that object can be best attained (Federalist no.62)." All economic systems
are controlled by a government, therefore the goals are chiefly the same. Most economic systems have the prosperity of their population as their
ultimate goal, but they utilize different methods to accomplish it.
With the risk of generalizing, I will give a brief overview of the major economic systems. Capitalism applies a method based on selfishness; it operates
under the assumption that if there is no incentive than nothing will be done. Communism's basis is equality;...show more content...
For example, Scandinavian countries have higher income tax rates than the U.S. and the U.K. according to the _______ Their tax rates generally favor
the poor, and income inequality is criticized.
Communist countries don't have the kind of taxes capitalist countries have; they take everything and redistribute it amongst the people. In theory it is
redistributed evenly, but generally only certain people can buy more valuable things.
Taxes, as can be seen, display how a government runs and what it's philosophy is. How the taxes or other income is utilized is another means by
which we can know how and why an economic system runs how it does. Most government expenditures can be classified as government programs, thus
those are what I am going to examine.
Capitalism views government programs as a necessary evil, inasmuch as capitalism is based on letting the economy run without much interference.
Capitalist countries normally have a police force, and other basic government programs, but they don't normally have very extensive welfare systems or
government run health

Economic Systems: Capitalism Essay
Capitalism
Capitalism is an economic system characterized by the private ownership of the means of production, and where production is guided and income
distributed largely through the operation of markets. The objective of a capitalist society is to gain profit.
Some of its strengths of living inside a Capitalistic economy are the incentive for innovation, efficiency, and economic growth. Unlike socialism, there
are opportunities to invent new products for areas of demand, to raise quality, and to gain assets.
One of the most recognized Capitalist economists after the Great Depression was John Maynard Keynes who advocated for the government
intervention on behalf of Capitalism to provide an economic stimulus. He opposed the...show more content...
Mainly in those who control the means of production. Therefore, if one of these, let alone both, cause a big enough gap in society then people figure
Capitalism has failed them and it's time to seek socialist medicine.
However, one economist was convinced that Socialism was not the medicine, it was the disease. The great depression gave birth to the biggest
opponent to Socialism, Nobel Prize–winning Austrian economist Friedrich Hayek, who believed in free–market capitalism without intervention from
the Government. In his book, "Road to Serfdom" Hayek rejects socialism and central planning by arguing that "the economy is too complicated for
politicians to avert recessions and unemployment without unintended consequences that may well be worse" (2011. Keith, Tamara), like the
unintended creation of totalitarian regimes such as the one that existed in Nazi Germany. Although Hayek was a proclaimed Capitalist and
contemporary to John M. Keynes, his views on the absolute separation between markets and government is what set them apart in their economic
theories of Capitalism.
PART III– CASE STUDY
The Beginning of the Financial Crisis
The financial crisis of 2008 was sparked by the bankruptcy of the US investment bank Lehman Brothers and the collapse of insurance giant AIG.

According to authors Thomas Friedman and Michael Mandelbaum in their book, That Used To Be Us, the 2008 crisis was

Economic System And Economic Systems
For this essay I will be focusing in on the three different 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 system of producing goods and the
exchange of goods and services. An economic systems also includes a process which is used to allocate its assets. Culture can have a big impact
because of a country 's economy. Just as a country 's economy state differs from country to country so does its culture. Why does it have an effect on
a country 's culture we ask? The difference between having an individualist or a collectivist culture is where we see it. In an individualist culture we
see more people being rewarded then we see in a collectivist culture. Being rewarded with things such as low tax rates which inspires them to continue
with their activities of their culture.
As mentioned in Chapter 7 no nation is either considered to be fully individualist or fully collectivist. National economies are arranged on a scale in
which we see the three different economic systems. The scale is setup in a way in which centrally planned economy is

Command Economic System
There are different types of economies, but the most common economic systems today are market and command economy. Command economy is
where there is a central authority that is basically in charge of the what, how, and for whom decisions. All of the economic decisions are made by the
government. If the people make any type of decision in the economy then there is barely any influence over how the basic economic questions are
answered. In the market economic system, the people and firms act in their own best interests to answer the what, how, and for who questions. The
system is arranged that allow buyers and sellers to come together in order to exchange goods and services. The people are basically the center of the
decision making; they are what...show more content...
Now, someone who lives in honk Kong can start a business up in a few hours. This allows the people of the country to make a lot of money
because they won't have to work for someone, they will be in charge of what they produce and what they sell to be successful in their companies.
The way the government of Hong Kong never goes bankrupt is they charge 15% on taxes. For most of the people that's a lot of money being taken
away but for people who take risks and chase their dreams, this won't be a problem. The same goes for the Unites States, they are risk takes.
America is not even the biggest country in the world but it produces the most goods and services. This is because the U.S government is not care
takers, they will let the people do what they want and be successful in their businesses. America is always open for new ideas. That is why America
will remain number one. Both socialism and capitalism can be debated which one is the best or which system operates better. The point is that one
lets you take risk and another will always have the answers there for you. Both can benefit you but one will pay off more in the end if you take risk and

Capitalism And The Economic System Essay
In a Capitalistic economic system, a country's industry and trade are controlled by private owners instead of the state. It allows consumer's choice in
which goods and services are produced based on demand. A Capitalist system gives all its members a chance to become great business owners. No
matter where you start in life or what your gender, race, and political views are; Capitalism gives everyone an opportunity to make it big. The United
State's economy became predominately capitalist by the 19th century after the death of Feudalism. The second half of the 19th century marks the
fastest economic growth in American history. There was a rapid rise of production, wages, and personal health. By the 20th century America became a
thriving superpower whose industrial and manufacturing economy even rivaled those of the European great powers. America's economic growth and
innovation was facilitated by capitalism, which allows you to keep the fruits of your hard labor. In contrast, a socialistic economic system seeks to
redistribute the wealth more equitably by social ownership of industries and natural resources. Socialist believe in nationalizing monopolies; however,
small, nonessential businesses would remain privately owned. The direct control and management of the industries and social services will be by the
workers through a democratic government. In a socialist system everyone equally shares the workload, everyone is given the same benefits and
prospers equally. Therefore,

Economic Systems Essay
Introduction
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 of this type of economy is that all major decisions that related to the construction or production,
distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a...show
more content...
Businesses can decide which goods to produce and in what quantity and consumers can decide what they want to purchase and at what price. The
role of the state is limited to ensure right precision in the prices charged by the sellers. Prices also have the function to allocate and distribute a
country's resources. Market leads to complete effectiveness bringing about the best possible distribution of a country's resources in a perfect
world. This would only happen in a state of equilibrium and there is a unique price for every commodity. But in a realistic world which is
imperfect by nature, prices are never at equilibrium and very unstable depending upon the vagaries of the market forces. This generally harms
people living below the poverty line. It is impossible for them to pay high prices in cases of demand shortage. Thus, the free market model is not a
viable option in developing countries which has a large number of poor. Besides, producers are aim to minimize profit and maximize rent of
production. Examples of countries that are using this economy system are Hong Kong, USA, and UK. Many developing countries like India and China
are moving towards totally free–market economy. The command economy is government directed. The market forces have very little say in such an
economy. There is no private property. On the other hand, a command economy aims at using all available resources for developing either

The Basics Of Canada's Mixed Economic System
Most countries around the world, including Canada, rely on a mixed market economy system in which the allocation of most resources, goods and
services is determined by supply and demand through markets and prices. This system has many flaws, including environmental damage, high income
inequality both within and between countries, resource depletion and so on.
When I think of alternative economic system, I have to go back to the basics of mixed economic system, what actually is and what it does. In every
kind of society we have to consider two things; how it produces goods and services and how these goods and services are distributed.one of the flaws of
is that it tends to learn more on the governmental control than the freedom of individuals. Sometimes, government regulations may cost company so
much that it put it out of market hence paralyzing production features (Tsuruta, 1997). This encourages social democratic programs which retain
capitalist's mode of production. The program also retain fundamental issues of capitalism such as cynical fluctuations, exploitation and alienation.
Another government negative is that it decides the amount of tax on products which may lead to hike of the prices of such products hence people
unwillingness to buy. Lack of price control management can cause deficiencies in goods hence bringing market imbalance.
Social democracy is mostly flawed for maintaining a property–owning capitalist class which actively reverse social democratic

The Economic System of South Africa
What type of economic system does this country have? Explain some of the benefits of this system to the country and some of the drawbacks.
South Africa's economic is mainly based on free market principles. However, as in most developed economies, competition is controlled by government
intervention. Therefore, South Africa has a mixed economy in which there is a variety of private freedom, combined with centralized economic planning
and government regulation.
ADVANTAGES:
Various restrictions on businesses are made for the greater good. For instance, the Competition Act of 1998; along the lines of the best international
practices; provides for various prohibitions on anti–competitive conduct and restrictive practices such as price fixing & even predatory pricing.
Both private and public sectors work side by side. The combined efforts lead to rapid economic development. The private sector's goal is to make
profit. For every dollar in revenue it earns, there is a tax that goes directly to some level of government. The public sector can then afford to continue
providing its services to the people. Additionally citizens also pay taxes through either goods or services from the private sector or public sector.
With international allegiances and international trade; imports and exports; it increases or expands opportunities for South African participation in
world markets, while recognizing the role of foreign competition within South Africa.
Mixed economies have a high

Essay about Comparative Economic Systems
Comparative Economic Systems Capitalism is the economic system found in the United States, Japan, and Germany that are based on private
ownership of productive property. Items are known as productive since their use can produce other objects of economic value, income, or money.
Things such as a worker's tools, a farmer's fields, or a factory's machine can be considered as productive property.
The basic four factors of production that are important for any nation's economy is land, human resource labor, management, and capital. Land sums up
to a variety of economic uses for agriculture, mining, and forestry. Men and women who work in mines, factories, offices, hospitals, and other places
all provide labor that's essential...show more content...
According to laws of supply and demand when supplies become more plentiful, prices tend to drop. Being that a firm is the only source of a product
or service, it's known as a monopoly. Monopolies can be very powerful due to the fact that they can charge as much as they want without any
competition. Consumers can choose from a variety of products and services, entrepreneurs can switch from one business to another, and workers can
quit their jobs and take new ones all has to do with freedom of choice.
Adam Smith claimed in a classic expression that when all individuals are free to pursue their own private interests, an "invisible hand" works to
promote the general welfare. On the other hand, the Laissez–Faire Theory confines that governmental activity should be confined to: (1) foreign
relations and national defense, (2) the maintenance of police and courts to protect private property and health, safety, and morals of the people, (3)
those few other functions that cannot be performed by private enterprise at a profit.
Many aspects of American economic life are regulated by government at every level, like the prohibition of trust, and protecting the environment. While
American economic life is also promoted by government, as well. For example, the government construct public roads and highways, and provides
such services as the postal system, the census, and weather reports.
Taking risks and making investments are an essential part of the

Economic Systems: How do they succeed or fail? I – Introduction Throughout history, the world has seen the emergence of different economic
systems, inspired by some of the brightest minds in the economic field. However, not all economic systems functioned as depicted by their
creators, and ended up failing. In this paper, I am going to analyze how every economic system failed or succeeded in a particular set of countries,
according to the criterion used and explained in the previous paper. To do this, I am going to explain the history of the countries involved and how
each system got implemented. I am also going to take into consideration the different measures of the criteria for assessing economic systems to
collect data of the countries analyzed in order to determine if those countries had successful economic systems. I am going to look for cases in which
certain parts of the system failed and others in which it can be agreed that it succeeded, and I will explain why, using the information I collected. It is
my objective to discover what particular characteristics made each country have a successful economic system, and what differences they have
compared to other not so successful nation–states. It is worth mentioning that there is no perfect system, and that the purpose of this paper is to show
cases of countries in which a specific ideology caused an either positive or negative result in the economy, polity or society. II– Economic systems A–
Capitalism As it

Socialism
Today, more than ever, there is great debate over politics and which economic system works the best. How needs and wants should be allocated, and
who should do the allocating, is one of the most highly debated topics in our current society. Be it communist dictators defending a command economy,
free market conservatives defending a market economy, or European liberals defending socialism, everyone has an opinion. While all systems have
flaws and merits, it must be decided which system is the best for all citizens. When looking at both the financial well being of all citizens, it is clear
that market economies fall short on ensuring that the basic needs of all citizens are met. If one looks at liberty and individual freedom, it is evident
...show more content...
"The population of unemployed and underemployed explodes. There is a vicious circle here. Because so many seek work, wages are very low.
Because one wage cannot support even a small family, more and more family members must seek employment. This move adds to the pool of labor
and further depresses wages." (Syracuse U. Press) Further, if wages begin to rise in one country, other countries seize the opportunity and lower their
wages even further. With this cycle of falling wages and more and more people needing jobs, poverty increases drastically. With wages so low, the
owners of these large companies get richer and richer–the vast majority of wealth in a country becomes concentrated in one small group of people.
While this is good for those few, the vast majority of citizens are shorthanded. Capitalism is an excellent system for the elite and for increasing
efficiency, but as far as providing for the needs of all of its citizens, it falls short. Thus, capitalism is a system that causes and perpetuates poverty,
and exploits its lower class. Capitalism, or market economies in general, are systems of greed, and therefore support and commend corruption. In a
capitalistic society, everything is based off of greed and self interest. People are forced to provide their own means, because no one else is going to do
it for them.

Economic System
Microeconomics 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, most developed countries are
capitalism and they have certified that capitalism is better; the greatest developing country which owns the second high GDP in the world, China, is
socialism, it seems that socialism is not bad; only a few countries are...show more content...
American government always complies with Keynesian for a long time, and believes that the reason that total social supply is not the same to total
social demand is the lack of effective demand (the analysis of American economy)." So most of the successive governments implement the
expansionary deficit policies, in order to deal with cyclical fluctuations, and stimulate effective demand artificially. Deficit policies are easy to make
economic bubble to stimulate the excessive consumption and promote market false prosperity, especially in the financial markets, it also has
contributed to raise inflation rates. Once the bubble bursts, the economic crisis would be coming.
"Socialism is an economic system characterized by social ownership and cooperative management of the means of production, and a political
philosophy advocating such a system (Wikipedia)." In socialism, the government needs to control the whole market in order to promote the productive

power according to the current market situation. The main economic strategies are based on the market and include more government control than
socialism. This is the best advantages of socialism because when the economic crisis was coming, the government could adjust the macro–control
policies and introduced a series of initiatives to expand domestic demand and promote economic development. It achieved success quickly and
efficiency. But, socialism is easy to establish monopoly enterprise. These

Economic System Advantages And Disadvantages
Economic System
There are many economic system in the study of economy .Economy system is the structure of production, distribution of economic input and output
and consumption of goods and services in an economy. There are 3 types of economic system which are planned economy system (command economy
), mixed economy system and free market system (market economy). Therefore , different countries have different economy system.
The Mixed Economy System Of Malaysia
Mixed economy system is the centrally planned economy system combining free market economy system. In simple words, mixed economy includes
free enterprise and government control or some form of direct intervention by government....show more content...
This is another disadvantage as can be noticed in the international firms that maintain presence in the country. This is because there is a need for
competitiveness to be on a level ground if these firms are to be profitable, but the note from all indication is that the chances of these firms to successes
are limited as a result of the limitation in their competitive capacity because the government has already given the local firms a higher competitive
advantage by imposing higher task on international brand, and limiting the chances of these international brand to adopt price–based competitive

Advantages And Disadvantages Of Economic Systems
An economic system defines how the various sectors of the economy interact. In modern times, people have defined economic systems to include
government policies. In the olden days, economic systems were pretty simple, as people used the trade by barter system which was very straight
forward. There were few treaties and almost no real rules of engagement. In this type of trade, you only exchanged goods that you had for what you
needed, or wanted. However, in modern monetary economies, the setting is quite intricate. Huge established companies have a lot of influence in the
way business is done. Treaties and agreements are made every day, and governments have made numerous laws to define trade, thus warranting the
need for a more comprehensive...show more content...
They do not have to produce what the government tells them to produce. This freedom, creates competition which forces companies to create new
products and features. A good example of this is the cell phone market, as new phones are released each year, as individuals create new ideas and
new features for their consumers, another advantage is that due to consumer driving decisions, it forces the producer to meet the requirements or
features required by the consumer as it influences the price of the product (Educator, 2015). However, from the advantages, a series of disadvantages
occur. Businesses driven by a profit motive may create a sense of danger for the business. This could be as a result of poor working environment and
unethical decisions may be taken by business owners to try and gain some profit (Educator, 2015) . The market economy may also cause the markets to
crash as it happened to the United States during the great depression, thereby creating a huge number of unemployed citizens which could lead to the
devastation of families (Educator, 2015).
Despite the effects of the depression and economic downturn in the early 2000s, the USA continues to operate as a market economy (Educator,

Essay about Comparative Economic Systems
Comparative Economic Systems
Governments have built up and founded on many different ideas, systems, and "what's right and wrong." Each country directs certain ideas on what's
right, and what works for them, some can be very successful, but at the same time all have flaws. In this comparative paper the differences and
similarities of capitalism, socialism, and communism are going to be addressed. In the end I will form my personal opinion of which I prefer.In a
communist world everyone would have food, shelter, and no one would be above another. In this perfect utopia society all would have a fair chance.
This was the belief of a man named Vladimir Lenin.
In 1917 Lenin over threw the government of Russia, in it's place...show more content...
Most socialist societies are democracies in which elected officials direct the allocation of resources in key industries. Some similarities between the
three are that socialism and communism are supposed to apply by all power being shared by everyone ideally getting out what they put in
proportionally, but communism and capitalism are the exact opposites. Some differences between the three would be that capitalism is the ownership
and control of the means of production. Also have freedom which gives consumers the opportunity to purchase the goods and services that best satisfy
their preferences; while in a communism society all individual freedom is lost, making socialism less efficient than communism.Something that drew
up project, embraced trade, industry, agriculture, education, and public health was the
Gosplan. Gosplan is the official planning organization. Something capitalism used was state farm; which provides coverage for automobiles, homes,
businesses, and individuals. An economic policy that adapted in the former Soviet Union was perestroika, is what communist called it; it's the
fundamental restructuring of the economy and government. Under the restructuring, five–year plans were retained, but the various ministries of
production were to be converted to efficient, state owned enterprises that would complete in a market economy.A well know communist was Karl
Heinich

Assignment On Economic System

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Assignment On Economic System