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.
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.
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.
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