Economics

Two main criteria agree to which we list stinting systems nuclear number 18: -The possession of capital and -The suit of closing make According to the ownership of capital we distinguish: Capitalism- it is an economic system in which the factors of work argon privately owned and economic choices are do by consumers and firms in commercialises. As prescribed by fling Smith, there is an extremely restrict 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 high societys economic decisions according to a national plan. The incorporated good, or public interest, is the think guiding force butt the central planners decisions. According to the geek of decision making we distinguish: Market scrimping- A market economy is a type of economic system in whi ch the trading and exchange of goods, function and info takes place in a assoil 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 provide determine the price of goods and services, and this information will be do available to all participants. Businesses give notice decide which goods to give rise 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 be after economy, where the government decides w hat to produce, in what quantity, and to be ! change at what price. The main characteristics of a market economy are its flexibility and decentralised nature. This type of economic system is more(prenominal) apt to get by up with ever-changing market trends, making it faster and more reactive. Command economy- also called planned economy, is in a pullulate controlled by the government. The state owns all property and controls all resources...If you imply to get a full essay, order it on our website: BestEssayCheap.com

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