Preview

Assignment on Economic System

Good Essays
Open Document
Open Document
1833 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Assignment on 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. These agencies are joined by lines of trade and exchange along which goods, money etc. are continuously flowing. An example of such a system for a closed economy is shown in the flow-diagram. The economics system involves production, allocation of economic inputs, distribution of economic outputs, landlords and land availability, households (earnings and expenditure consumption of goods and services in an economy), capitalists, banks (finance institutions) and government. It is a set of institutions and their various social relations.
The Four main kinds of Economic Systems are:- 1. Traditional Economic Systems,
2. Market Economic Systems
3. Command Economic Systems
4. Mixed Economic Systems
1) Traditional Economic Systems:
An economic system under which people produce just enough goods to feed their households with very little left for sale or for exchange in the market. Characteristics of Subsistence Economic Systems:
a) Production is geared towards subsistence (the family) and basic survival.
b) Trade is mainly by a barter system (direct exchange of goods and services).
c) Market and money are of little importance
d) Custom and traditions are major influences on what is produced and how products are allocated.
Examples:
i) Aborigines ii) Amazon Tribes
Advantages:
The main advantage of traditional economy is that this type of economics produces only those goods and services which are required for the survival or which they want to consume. Hence there is no surplus or wastage and hence it does not waste resources for goods and services which are unnecessary. Also in this economy people know exactly what their roles or job is and hence there is no duplication of effort.
Disadvantage:
However it suffers from certain disadvantages like this type of economy

You May Also Find These Documents Helpful

  • Good Essays

    Economic Systems

    • 404 Words
    • 2 Pages

    Numerous and diverse economic systems have been established throughout the course of global history, impacting society in various ways. Many of these systems include manorialism, capitalism, communism, market economy, and many more. An economic system that has greatly influenced a specific region and its society is communism, established in Russia during the Russian Revolution. During and after World War I, Russia was in chaos due to the opposition of czarist rule, economic hardships, and other dissatisfactions of many. Due to these complications, Russians were pleading for economic and political changes. Communism in Russia immensely affected Russian society as some oppressed this regimen, while others benefited from it.…

    • 404 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    A economic system that is regulated by the interactions between producers and consumers in the market.…

    • 401 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    chapter 2 economics

    • 538 Words
    • 3 Pages

    3. How does a traditional economy answer the basic question “How should it be produced?”…

    • 538 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Economics Assignment

    • 6693 Words
    • 27 Pages

    Question: Categorize each seller below on the basis of the type of market it operates in. Explain each of your answers:…

    • 6693 Words
    • 27 Pages
    Good Essays
  • Satisfactory Essays

    Emergency Economic Stabilization Act - provided authority for the federal government to purchase certain troubled assets and to provide individual income tax relief…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Economics assignment

    • 2048 Words
    • 9 Pages

    3. As the price of a good increases, the change in the quantity demanded can be shown by…

    • 2048 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    Rep Economics Quiz

    • 754 Words
    • 4 Pages

    A county's economic system consists of the structure and processes it uses to allocate its resources and conduct its commercial activities. T…

    • 754 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Scarcity and Economics

    • 686 Words
    • 3 Pages

    Economic system is a manner in which a nation uses its resources and manages production and distribution. In other meaning is an organized way in which a state or nation allocates its resources and apportions goods and services in the national community. The following are the types of economic systems;…

    • 686 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    ● The institutional framework of formal and informal rules that a society uses to determine…

    • 1424 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Business Study1

    • 634 Words
    • 3 Pages

    An economy is the system of production, trade, distribution, and consumption of products and services in an area.…

    • 634 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Economic Questions

    • 2799 Words
    • 12 Pages

    Economic system refers to the way in which the society solves the basic economic problems of scarcity of resources. Different economic systems have addressed the three basic questions in radically different ways. [Samuelson 2005, pg.7]…

    • 2799 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    Each society is faced with a problem concerning their economic state. The economic problem is that there are limited resources in relation to unlimited wants. This problem brings about the need for a system to answer questions like what to produce, how to produce, how much to produce and how to distribute production. An economic system is the organisational and institutional pattern through which choices are made about which wants to satisfy, and how to allocate resources to do this. The different economic systems include planned economies, market economies and mixed economies. Australia has a mixed-market economic system in which there is a mixture of control by the government and freedom of individual enterprise and in which the basic economic…

    • 1625 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Marxism Vs Fascism

    • 414 Words
    • 2 Pages

    An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.…

    • 414 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Nsl Study Guide

    • 1431 Words
    • 6 Pages

    In a ________________economic system the government makes all of the decisions and controls many of the businesses.…

    • 1431 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Economics Assignment

    • 633 Words
    • 3 Pages

    Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.…

    • 633 Words
    • 3 Pages
    Satisfactory Essays