The document provides an overview of three main types of economic systems: command economy, market economy, and mixed economy. It explains that a command economy involves major economic decisions being made by the government, while a market economy gives businesses and consumers more freedom to make decisions with limited government involvement. A mixed economy combines elements of both command and market economies. The document also provides examples of countries that utilize different economic systems and notes that some developing countries are moving toward more market-based systems.

1. 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 calledplanned 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
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2. Supply And Demand Essay
Laws of Supply and Demand The market price of a good is determined by both the supply and
demand for it. In the world today supply and demand is perhaps one of the most fundamental
principles that exists for economics and the backbone of a market economy. Supply is represented
by how much the market can offer. The quantity supplied refers to the amount of a certain good
that producers are willing to supply for a certain demand price. What determines this
interconnection is how much of a good or service is supplied to the market or otherwise known as
the supply relationship or supply schedule which is graphically represented by the supply curve. In
demand the schedule is depicted graphically as the demand curve which represents the...show more
content...
This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if
the quantity supplied decreases at any given price the opposite will happen. A sudden increase or
decrease in the supply of a particular good is also known as a supply shock. A supply shock is an
event that suddenly changes the price of a product or service. This sudden change affects the
equilibrium price. The two types of supply shocks that exist are the Negative Supply shock and
the Positive Supply shock. A negative supply shock, which is a sudden supply decrease, will
raise the prices and shift the aggregate supply curve to the left. A negative supply shock can
cause stagflation due to the combination of raising prices and the falling output. Meanwhile a
positive supply shock, an increase in supply, will lower the price of a good and shift the aggregate
supply curve to the right. A positive supply shock could be advancement in technology which most
certainly makes production more efficient which thus increases output. For example a positive
supply shock could be shown in the early 1990s when communication and information technology
exploded which resulted directly in productivity increase, and an example of a negative supply
shock would be that of the high oil prices associated with Arab oil embargo of the early 70s is the
classic example of this occurrence. Any other factor could also produce this effect. Such as if
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3. Macroeconomics Essay
"Macroeconomics is a branch of economics that deals with the performance, structure, and behavior
of a national economy as a whole. Macroeconomists seek to understand the determinants of
aggregate trends in an economy with particular focus on national income, unemployment, inflation,
investment, and international trade" (Wikipedia, 2007). Government tends to use a combination of
both monetary and fiscal options when setting policies that deal with the Macroeconomic.
According to McConnell & Brue (2004), governments make adjustments through policy changes
which they...show more content...
dollars into gold at $35 per ounce, has made the U.S. and other countries' monies into fiat
money–money that national monetary authorities have the power to issue without legal constraints.
Money is used in all economic operations; money has a powerful effect every economic activity. The
increase in supply of money put more money in the hands of the consumers and increased spending.
When the money supply continues to expand and the prices begin to increase, particularly if the
output growth reach to the capacity limits as the public begin to expect the inflation, lenders insist on
higher interest rates to offset and expected decline in purchasing power over the life of their loans.
Contradictory results happen when the supply of money falls, or when the rate of growth cries off.
The U.S. money supply comprises currency–dollar bills and coins issued by the Federal Reserve
System and the Treasury–and various kinds of deposits held by the public at commercial banks and
other depository institutions such as savings and loans and credit unions. On June 30, 1990, the
money supply, measured as the sum of currency and checking account deposits, totaled $809 billion.
Including some types of savings deposits, the money supply totaled $3,272 billion. And even broader
measure totaled $4,066 billion
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4. Economics Essay
Definition of Topic: Economics is the study of supply and demand. It defines the ways that human
beings allocate resources and how resources are distributed amongst a market. It allows you to see
trends in current market places and predict what may happen in the future. Many different subjects
were once regarded as a part of economics. Political science and even sociology were once
considered part of the field. These subjects still play a major role in understanding economics but are
also completely separate disciplines today. History: Since ancient times, humans have contemplated
basic economic problems. Many great minds have tried to master the subject. Aristotle and Plato were
probably the first to document such studies. Both...show more content...
For Marx, capitalism's fatal contradiction was between improving technological efficiency and the
lack of purchasing power to buy what was produced in ever larger quantities. John Maynard Keynes
was a student of Alfred Marshall and an exponent of neoclassical economics until the 1930s. The
Great Depression bewildered economists and politicians alike. The economists continued to hold,
against mounting evidence to the contrary, that time and nature would restore prosperity if
government refrained from manipulating the economy. Unfortunately, approved remedies simply did
not work. In the U.S., Franklin D. Roosevelt's 1932 landslide presidential victory over Herbert
Hoover attested to the political bankruptcy of laissez–faire policies. New explanations and fresh
policies were urgently required; this was precisely what Keynes supplied. In his enduring work The
General Theory of Employment, Interest, and Money, the central message translates into two
powerful propositions. Existing explanations of unemployment he declared to be nonsense: Neither
high prices nor high wages could explain persistent depression and mass unemployment. Instead, he
proposed an alternative explanation of these phenomena focused on what he termed aggregate
demand–that is, the total
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5. What is Economics? Essay
Many people think that economics is about money. Well, to some extent this is true. Economics has
a lot to do with money: with how much money people are paid; how much they spend: what it costs
to buy various items; how much money firms earn; how much money there is in total in the
economy. But despite the large number of areas in which our lives are concerned with money,
economics is more than just the study of money.
It is concerned with:
В·The production of goods and services: how much the economy produces; what particular
combination of goods and services; how much each firm produces; what techniques of production
they use; how many people they employ.
В·The consumption of goods and services: how much the population as a...show more content...
There are three types of resources:
В·Human resources: labour The labour force is limited both in number and in skills.
В·Natural resources: land and raw materials The world's land area is limited, as are its raw materials.
В·Manufactures resources: capital
All inputs into production that have themselves been produced: e.g. factories, machines and tools.
One must bear in mind that our wants are virtually unlimited, while the resources available to
satisfy these wants are limited. In other words when society demands more of a product than can
actually be produced to fulfil those wants we have a problem of scarcity. An example of this would
be the OPEC oil price shocks between 1973 and 1980. Yes, it is true that the price of oil rose and
some individuals used substitutes but the economies of oil importing countries like Germany and
Japan fell because OPEC now had more buying power since they had the control over a scarce
resource. We can therefore think of oil as having become scarcer in economic terms when its price
rose.
Earlier I stated that economics is concerned with consumption and production. We can look at it in
the terms of demand and supply. It is simply the quantity of a good buyers wish to purchase at each
conceivable price. Three factors determine demand:
В·Desire
В·Willingness to pay

6. В·Ability to pay
Whilst supply is the quantity of good sellers wish to sell at each conceivable price. Supply is
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7. Economic Growth Essay
Economic Growth Economic growth refers to the rate of increase in the total production of goods
and services within an economy. Economic growth increases the productivity capacity of an
economy, thereby allowing more wants to be satisfied. A growing economy increases employment
opportunities, stimulates business enterprise and innovation. A sustained economic growth is
fundamental to any nation wishing to raise its standard of living and provide a greater well being
for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced
over a year. It is the total value of production within the economy. The total value of production is
the total value of the final goods or services less the cost of...show more content...
Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A
more reliable measure of economic growth is real GDP per capita; this measurement takes into
account both the total production of the nation and the total population. Real GDP per capita
measures the real income per head of the population.
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP
/ Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic
growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an
essential foundation to economic growth. Combined with the other resources of capital, labor and
enterprises, natural resources can be developed and organized to increase the productive capacity if
the nation. Consequently the quality and size of the labor force is a major determinant of economic
growth. Education and vocational training are essential the growth potential of a nation. The
promotion of education and job training schemes increase the knowledge, skills and flexibility of the
workforce that contributes to potentially higher levels of productivity and efficiency. Whether from
natural increase or immigration population growth can cause a higher level of economic growth. An
increasing population requires increased public spending on housing, education and other social
needs while businesses expectations of
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8. Economics Reflection
. Through the process of reading, I learned many things about the economy. First of all, I learned
that it is a much more difficult decision to come to in regards of how much government
involvement in the nation's economy is enough, how much is too little, and how much is not
enough. I also learned that trying to keep the economy stable and productive is a constant and
difficult struggle, and that it is often difficult to even know what needs to or can be done in order to
stabilize it. While I find economics to be somewhat boring (I am a music major and largely
emotionally driven, which means that my entertainment is usually emotionally involving somehow),
I actually enjoyed how Wheelan explained economics in this book. While I would not read it for
fun, reading this book as an assignment was not painful.
Having government involved in the economy has its pros and cons. One of the Pros is that the
government can help prevent or discourage harmful behaviors or actions. Government regulation can
prevent man–caused shortages. Fishing regulations are often put in place to prevent overfishing.
These regulations prevent or discourage fishermen from fishing too much in one season, which
allows the fish to repopulate and remain available in the future. In the book, Wheelan mentioned
how the government can also tax bad behaviors to encourage behaviors that benefit health and/or the
environment. An example of this is a tax on gasoline and/or larger vehicles, or a tax on cigarettes.
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9. Essay on History of Economics
Economics 515
Midterm 1
1.Economic growth vs. economic development, define extensive growth & intensive growth
Economic growth is the sustained increase in the output of goods/services of a society.
Economic development is economic growth plus changes in technical and institutional arrangements
by with output are produced.
Extensive growth– increase in output due to increase in inputs (labor force grows, land stock
increases)
Intensive growth– increase in output per unit of input – productivity increases (technological change)
2.List 2 data sources researchers use to estimate historical standards of living; three indicators of
economic development other than National Income measures of interest to economists
Data...show more content...
List 4 contributions of the earliest civilizations (those that eventually formed the Babylonian Empire)
and explain how each was important to continued economic growth.
Writing– originated in Sumarian civilization o 3500 BCE–Sumarian draw pictograms on clay
tablets o Bureaucratic necessity: records of tax collection/tributes o 3200 BCE– ideograms– symbols
for sun, moon, phonograms, cuneiform script="wedge" writing
Arithmetic– keeping track of accounts, creation of 0 value
Weights/measures– standard of trade
Geometry– measurement of fields/buildings (architecture)
Code of Law– civilization required development of law, regulate interactions of men/women o
Code of Hammurabi c. 1700 BCE– regulation of contracts, irrigation procedures, regulating lending
parties (max interest
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