Information System Used by Kmart
Section A
Markets and governments have complementary roles in industrialization. Markets are dealing with the growing economics complexity that came with industrialization. Then, governments have to determine the types of economy. a) Identify the type of economics system and explain the economic characteristics of each.
Economic systems are normally distinguished by the extent of government involvement in resource allocation and goods production. There are three major types of economic systems such as free-market economy, command economy, and mixed economy. Many countries have a mixed economy to some extent, meaning they combine aspects of market and planned systems. However, the general trend of economic policy can often allow for categorization into one of the other three systems.
Free-market economy
A market economy is closely related to capitalism and free enterprise. The demand for goods defines what is produced, and most businesses are privately owned. Those individuals and firms pursue their own self-interest without any central direction and regulations. They are all motivated by profit, where the buyers and sellers are solely responsible for the choices they make. In addition, free-market gives the absolute power to prices to determine the allocation and distribution of goods and services.
These prices, in turn, are fixed by the forces of supply and demand of a respective commodity. Only people with sufficient control over resources, and wealth, in particular have the privilege to purchase goods and services, often priced very highly in a free-market economy. The prices, which are the only allocating and distributing factor in this economy, place the poor in an unenviable situation who are gradually thrown out of the system without any access to wealth and the basic needs of subsistence. Furthermore, if the demand is short of the supply of a respective commodity, the price will fall as opposed to a price rise when the supply is inadequate to meet
Markets and governments have complementary roles in industrialization. Markets are dealing with the growing economics complexity that came with industrialization. Then, governments have to determine the types of economy. a) Identify the type of economics system and explain the economic characteristics of each.
Economic systems are normally distinguished by the extent of government involvement in resource allocation and goods production. There are three major types of economic systems such as free-market economy, command economy, and mixed economy. Many countries have a mixed economy to some extent, meaning they combine aspects of market and planned systems. However, the general trend of economic policy can often allow for categorization into one of the other three systems.
Free-market economy
A market economy is closely related to capitalism and free enterprise. The demand for goods defines what is produced, and most businesses are privately owned. Those individuals and firms pursue their own self-interest without any central direction and regulations. They are all motivated by profit, where the buyers and sellers are solely responsible for the choices they make. In addition, free-market gives the absolute power to prices to determine the allocation and distribution of goods and services.
These prices, in turn, are fixed by the forces of supply and demand of a respective commodity. Only people with sufficient control over resources, and wealth, in particular have the privilege to purchase goods and services, often priced very highly in a free-market economy. The prices, which are the only allocating and distributing factor in this economy, place the poor in an unenviable situation who are gradually thrown out of the system without any access to wealth and the basic needs of subsistence. Furthermore, if the demand is short of the supply of a respective commodity, the price will fall as opposed to a price rise when the supply is inadequate to meet