The description of an economic system, also known as economic structure, is a complex system of distribution, interaction and production of goods and services in a given geographical area or a nation. It is made up of a number of interacting economic units, with varying scales and structures. Economists are known to use different terms in defining such structures, including barometric, structural, functional and technological. Some of the most prominent systems of economy include the following:
The traditional economy is based on local units of production and exchange. It is the dominant economic system in most developed countries. Such as in the United States, a traditional economy simply refers to a country that has a specific geography characterized by long-standing land and time traditions, developed communities and a specific culture. This system generates limited social diversification, highly localized production and exchange. A traditional economy does not require international trade, because domestic markets serve as sufficient sources of growth.
Economies of the future will be characterized by a mix of traditional and nontraditional modes of development. Some current nations may experience significant transformations in the manner in which they organize their economy. For instance, in China, the traditional economy relies on heavy investment in heavy industry and state-led development. The rapid rise of the Chinese government and the rapid rise of the Chinese economy are likely to change the organization of the Chinese market, particularly in the services sector. In the United States, the traditional economy continues to dominate the global output and sales, while the nontraditional economy grows at a very high rate, partially due to rising income levels. In the United Kingdom, nontraditional economies continue to grow, but they remain relatively stagnant since the end of the industrial revolution in the mid-twentieth century.
Technological change is also likely to significantly affect the way in which economies organize themselves. For instance, in developed economies, there is already a tendency for goods to be produced at lower cost, via technology that lowers the overhead associated with production and increases efficiencies. Such changes have reduced the size of companies, made it possible for more goods to be sold for the same amount of money, and made it possible to realize bigger profits from the same amount of resources. All these factors combine to promote the protection of intellectual property rights, lower the costs of starting up and maintaining a business, and increase competition among suppliers.
A market-oriented economic system will also result in less redistribution of wealth. Because goods will be produced and marketed efficiently, the public will have greater access to goods that they need. Less competition also increases the incentives for the production of additional goods by other countries. As a result, wages can rise and employment can increase, leading to an improvement in living standards for all citizens.
Although all economic systems are characterized by the existence of differing shares of national resources, none of them provides the kind of stability that comes with a mixed economy. A mixed economy is characterized by a combination of socialism and capitalism, with different degrees of intervention by different types of actors. The existence of various competing businesses hampers growth and results in higher prices for goods. Between-the-counter drugs, sophisticated treatments for cancer, and medical-related technologies all illustrate how the presence of competitors hinders the efficiency and productivity of a centralized system. Mixed economies have been unstable because of this tendency, leading to periods of boom and bust, and a retreat from standard political and social practices.
Economic System – Lessons – Blendspace – all economic systems | all economic systems
PPT – Four Economic Systems PowerPoint Presentation, free download – all economic systems | all economic systems
Economic Systems | all economic systems
Economic Systems – all economic systems | all economic systems
Economic Systems презентация, доклад – all economic systems | all economic systems
Economic System The way people produce and exchange goods and – all economic systems | all economic systems
Economic Systems Intelligent Economist – all economic systems | all economic systems
Economic system – Wikipedia – all economic systems | all economic systems
One of the best things in life is seeing a smile on your parents' faces, and realizing that you are the reason. Just because someone else is not nice to us, doesn't mean we have to reciprocate in the same way. For every human in this world, God has given something noble and good in his heart. Always take care of your heart.
What is the list of economic systems? This is one question that has preoccupied scholars for many years. The aim of this essay is to explain the answer to this question in as clear a way as possible. In other words, what is it that economists mean when they say that a particular economic ...
“How many economic systems are there?” This is a question asked by many intelligent people who have studied the workings of our economic and monetary system. And they ask this question because they want to know how many ways there are to break the existing systems and create new, more robust and efficient systems. ...