1. Ch-
16

2. In general, economic development is usually the focus of
federal, state, and local governments to improve our standard
of living through the creation of jobs, the support of innovation
and new ideas, the creation of higher wealth, and the creation
of an overall better quality of life. Economic development is
often defined by others based on what it is trying to
accomplish. Many times these objectives include building or
improving infrastructure (such as roads, bridges, etc.),
improving our education system through new schools,
enhancing our public safety (fire and police service), or
incentivizing new businesses to open a location in a
community.

3. Economic development often is categorized into the following three
major areas:
Governments working on big economic objectives such as creating jobs or
growing an economy. These initiatives can be accomplished through
written laws, industries' regulations, and tax incentives or collections.
Programs that provide infrastructure and services such as bigger
highways, community parks, new school programs and facilities, public
libraries or swimming pools, new hospitals and crime prevention
initiatives.
Job creation and business retention through workforce development
programs to help people get the needed skills and education they need.
This also includes small business development programs that are geared
to help entrepreneurs get financing or network with other small
businesses.

4. Mixed economy:-
A mixed economy is an economic system that is variously
defined as containing a mixture of markets and economic
planning, in which both the private sector and state direct the
economy; or as a mixture of public ownership and private
ownership; or as a mixture of free markets with economic
interventionism. Most mixed economies can be described as
market economies with strong regulatory oversight and
governmental provision of public goods. Some mixed economies
also feature a variety of state-run enterprises.

5. In general the mixed economy is characterised by the private
ownership of the means of production, the dominance of markets
for economic coordination, with profit-seeking enterprise and the
accumulation of capital remaining the fundamental driving force
behind economic activity. But unlike a free-market economy, the
government would wield indirect macroeconomic influence over the
economy through fiscal and monetary policies designed to
counteract economic downturns and capitalism's tendency toward
financial crises and unemployment, along with playing a role in
interventions that promote social welfare.Subsequently, some
mixed economies have expanded in scope to include a role for
indicative economic planning and/or large public enterprise sectors.

7. Socialist economy:-
It refers to the economic theories, practices, and norms of hypothetical
and existing socialist economic systems.
A socialist economic system is based on some form of social ownership
of the means of production, which may mean autonomous cooperatives
or direct public ownership; wherein production is carried out directly for
use. Where markets are utilized for allocating inputs and capital goods
among economic units, the designation market socialism is used. When
planning is utilized, the economic system is designated a planned
socialist economy. Non-market forms of socialism usually include a
system of accounting based on calculation-in-kind or a direct measure of
labor-time as a means to value resources and goods.[1][2]

8. Price mechanism:-
Price mechanism is an
economic term that refers
to the manner in which
the prices of commodities
affect the demand and
supply of goods and
services.
Socialist system:-
A socialist economic system is
based on some form of social
ownership of the means of
production, which may mean
autonomous cooperatives or direct
public ownership; wherein
production is carried out directly
for use. Where markets are
utilized for allocating inputs and
capital goods among economic
units, the designation market
socialism is used.

9. Capitalist system:-
Capitalism is an economic system and a mode of production
in which trade, industries, and the means of production are
largely or entirely privately owned. Private firms and
proprietorships usually operate in order to generate profit,
but may operate as private nonprofit organizations.Central
characteristics of capitalism include private property,
capital accumulation, wage labour and, in some situations,
fully competitive markets.In a capitalist economy, the
parties to a transaction typically determine the prices at
which they exchange assets, goods, and services.

10. Market mechanism:-
Market mechanism is a term
from economics referring to
the use of money exchanged
by buyers and sellers with an
open and understood system
of value and time trade-offs
to produce the best
distribution of goods and
services.
Capitalist system:-
Capitalism is an economic system and a
mode of production in which trade,
industries, and the means of production
are largely or entirely privately owned.
Private firms and proprietorships usually
operate in order to generate profit, but
may operate as private nonprofit
organizations.Central characteristics of
capitalism include private property,
capital accumulation, wage labour and,
in some situations, fully competitive
markets.In a capitalist economy, the
parties to a transaction typically
determine the prices at which they
exchange assets, goods, and services.

11. Market mechanism:-
Market mechanism is a term from economics
referring to the use of money exchanged by
buyers and sellers with an open and understood
system of value and time trade-offs to produce
the best distribution of goods and services.

12. The use of the market mechanism imply in a free market; there can
be captive or controlled markets that seek to use supply and
demand, or some other form of charging for scarcity, both in social
situations and engineering. This is a main term when it comes to
marketing in economics. In this, we have three types of economy
free market economy, command or planned economy and mixed
economy. In free market economy, all the resources are allocated by
private sector (individuals, households, and groups of individuals); in
planned economy, all the resources are owned by the public sector
(local and central government); and, in mixed economy, the
resources are owned by both private and public sector. Resources are
allocated according to the forces of demand and supply, and this is
known as market mechanism.

14. Price mechanism:-
Price mechanism is an economic term that refers to the
manner in which the prices of commodities affect the
demand and supply of goods and services. Price
mechanism affects both buyers and sellers who negotiate
prices of goods or services.A price mechanism or market-
based mechanism refers to a wide variety of ways to
match up buyers and sellers through price rationing.

15. An example of a price mechanism uses announced bid and
ask prices. Generally speaking, when two parties wish to
engage in a trade, the purchaser will announce a price he is
willing to pay (the bid price) and seller will announce a price
he is willing to accept (the ask price).
The primary advantage of such a method is that conditions
are laid out in advance and transactions can proceed with no
further permission or authorization from any participant.
When any bid and ask pair are compatible, a transaction
occurs, in most cases automatically.

16. Effects of the price mechanism:-
Price Mechanism causes many changes in the
economic environment. If there is an increase
in demand, then prices will go higher causing a
movement along the supply curve.An example
of price mechanism in the long term is the oil
crisis during the 1970s.

17. The crisis caused more nations to start producing its
own oil due to dramatic price increases of oil. Since
more nations started to produce oil, the supply
curve shifted more to the right meaning there was
more supply of oil.

18. Price Mechanism affects every economic situation in the
long term. Another good example of price mechanism in
the long run is fuel for cars. If fuel becomes more
expensive, then the demand of fuel would not decrease
fast but eventually companies will start to produce
alternatives such as biodiesel fuel and electrical cars.
Price mechanism is a system by which the allocation of
resource and distribution of goods and services are
made on the basis of relative market price.

21. BY:Manan popat ,
Manav shah
Class: 10-c