This document discusses different types of economic systems including capitalism, communism, socialism, and traditional systems. Capitalism is defined as a private ownership system with minimal government interference. Communism is described as a system with government control and ownership of production. Socialism involves state ownership of major resources and means of production. Traditional systems are based around family and ethnic groups with farming, hunting, and gathering.

1. Economic Systems
Presented By:
M Sajjad
Roll# 907
Bs (Hons)
Geography
PH# 03346544625

2. Contents
 What is Economic System?
 Factors of production
 Why Economic systems?
 Types of Economic systems
 Capitalism
 Communism
 Socialism
 Traditional Economic system

3. What is 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.
Technology
Land
Oil & fuel
Doctors

4. Factors of Production
 Economic Resources
 Natural Resources – raw materials found in
nature that are used to produce goods
 Human Resources – people’s knowledge, efforts,
and skills used in their work
 Capital Resources – used to produce goods and
services (buildings, materials, and equipment)
 Industrial Resources - recognize the need for
new goods or service

5. Why Economic Systems?
 Nations use economic systems to
determine how to use their limited
resources effectively.
 Primary goal of an economic system is to
provide people with a minimum standard
of living, or quality of life.

6. Types of Economic systems
Capitalism
“Economic system where the means of production are
owned by private individuals.”
The term capitalism was first introduced in the mid-19th
century by Karl Marx, the founder of communism
Microsoft ® Encarta ® Encyclopedia 2005 © 1993-2004 Microsoft Corporation. All rights reserved.
Government control and interference at a minimum level
Private ownership of natural resources allowed

7. CHARACTERISTICS OF CAPITALISM
 land and capital are privately owned.
 Capital in this sense means the buildings, machines, and other
equipment used to produce goods and services that are ultimately
consumed.
 Economic activity is organized through the interaction of buyers
and sellers in markets.
 Owners of land and capital are free to follow their own self-
interests in seeking maximum gain from the use of their resources
and labor in production.
 Consumers are free to spend their incomes in ways that they
believe will yield the greatest satisfaction.
.
Microsoft ® Encarta ® Encyclopedia 2005 © 1993-2004 Microsoft Corporation. All rights reserved

8. Capitalism

9. Types of Economic Systems
Communism
“Economic system in which all people enjoy equal
social and economic status.”
(M icrosoft ® Enc arta ® Encyclopedia 2005 © 1993-2004 M icrosoft Corporation. All rights reserv ed.)
System of social and political organization that
was a major force in world politics for much of the
20th century
Karl Marx and Friedrich Engels

10. CHARACTERISTICS OF COMMUNISM
 Economic system in which means of production is
owned and controlled by the government.
 Government plans production by determining what
produced and what quantity
 Production determined by need not profit.
 Overproduction, duplication of effort, and depressions
avoided
 Competition is replaced by cooperation and planning.

11. COMMUNISM

12. Types of Economic Systems
Socialism
“The term "socialism" was created by Henri de Saint-
Simon, a founder of ideal socialism. The term "socialism"
was created to contrast against the liberal policy of
"individualism.“
The socialist doctrine demands state ownership and control
of the fundamental means of production, distribution of
wealth, to be achieved by reconstruction of the existing
capitalist or other political system of a country through
peaceful, democratic, and parliamentary means.
Microsoft ® Encarta ® Encyclopedia 2005 © 1993-2004 Microsoft Corporation. All rights reserved.

13. SOCIALISM

14. Traditional Economic system
 Found in rural, under-  Economic activities are
developed countries– centered around the
 Vanuatu family or ethnic unit
 Pygmies of Congo  Men and women are
 Eskimos & Indian tribes given different economic
 Belarus roles and tasks
 Customs govern the  Advantages: people
economic decisions have specific roles;
that are made security in the way
 Farming, hunting and things are done
gathering are done the  Disadvantages:
same way as the Technology is not used;
generation before difficult to improve

15. Traditional Economic System

16. GDP (Gross Domestic Product) per
capita

17. References
 http://www.economywatch.com/world_economy/world-economic-indicators/type-of-economic
 http://en.wikipedia.org/wiki/Capitalism
 http://en.wikipedia.org/wiki/Communism
 http://en.wikipedia.org/wiki/Socialism
 http://www.slideshare.net/RachalJames/economic-systemsppt-edited-presentation
 http://www.floatingsheep.org/2010/04/political-cyberscapes-ii-capitalism.html
 http://conservatoons.deviantart.com/art/Obama-s-Pro-Socialist-logo-198812751

18. Thanks for
Patience