Economics

Two chief(prenominal) criteria agree to which we make out stinting systems atomic number 18: -The possession of capital and -The suit of end make According to the ownership of capital we distinguish: Capitalism- it is an economic system in which the factors of work argon privately have and economic choices are do by consumers and firms in commercialises. As prescribed by fling Smith, there is an extremely restrain role for government, and self-interest is the madcap force, held in check, or regulated, by competition (Invisible dig). Socialism-it is an economic system in which the government owns the factors of production. The central administration make the myriad of parliamentary procedures economic decisions according to a national plan. The incorporated good, or public interest, is the think guiding force slow the central planners decisions. According to the caseful of decision making we distinguish: Market scrimping- A market economy is a type of economic system in which the trading and exchange of goods, go and info takes place in a openhanded market. A market economy may therefore also be known as a free market economy.

Since free markets are governed by the police of supply and demand, the market itself go away determine the price of goods and services, and this information will be do available to all participants. Businesses give notice decide which goods to parent and in what quantity, and consumers and businesses can decide what they loss to purchase and at what price. The opposite of a market economy is a think economy, where the go vernment decides what to produce, in what qu! antity, and to be change at what price. The main characteristics of a market economy are its flexibility and decentralise nature. This type of economic system is much apt to header up with ever-changing market trends, making it faster and more reactive. Command economy- also called planned economy, is in a frighten away controlled by the government. The state owns all property and controls all resources...If you moot to get a full essay, order it on our website: BestEssayCheap.com

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