Economics

Two main(prenominal) criteria agree to which we chance upon scotch 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 hold 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 decrees economic decisions according to a national plan. The incarnate good, or public interest, is the think guiding force tardily the central planners decisions. According to the fictional character of decision making we distinguish: Market scrimping- A market economy is a type of economic system in which the trading and exchange of goods, serve and info takes place in a promiscuous 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 forget determine the price of goods and services, and this information will be make available to all participants. Businesses give notice decide which goods to win 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 government decides what to p roduce, in what quantity, and to be change ! at what price. The main characteristics of a market economy are its flexibility and deconcentrate nature. This type of economic system is more than apt to tell apart up with ever-changing market trends, making it faster and more reactive. Command economy- also called planned economy, is in a bourgeon controlled by the government. The state owns all property and controls all resources...If you move to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay