Economic system

Examples of Economic system in the following topics:

• Economic Systems

  • A country's economic system is made up of institutions and decision-making structures that determine economic activity.
  • An economic system is the combination of the various agencies and entities that provide the economic structure that defines the social community.
  • Alternatively, an economic system is the set of principles by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive resources.
  • Today the world largely operates under a global economic system based on the free market mode of production.
  • The economic system in which most businesses are owned and operated by individuals is the free market system, also known as "capitalism. "

• The Communist Economic System

  • The communist economic system is one where class distinctions are eliminated and the community as a whole owns the means to production.
  • A communist economic system is an economic system where, in theory, economic decisions are made by the community as a whole.
  • Marx did not want there to be a difference in economic classes and he wanted class struggle to be eliminated.
  • His main goal was to abolish capitalism (an economic system ruled by private ownership).
  • Explain how a communist economic system is representative of a command planned economy

• Free Enterprise

  • China is seen as the primary example of a successful state capitalist system.
  • This economic system is based solely on private ownership as the means of production.
  • Capitalism is generally considered to be an economic system that is based on private ownership of the means of production and the creation of goods or services for profit by privately-owned business enterprises.
  • Many states have what are termed mixed economies, referring to the varying degree of planned and market-driven elements in a state's economic system.
  • Explain how free enterprise leads to the economic system of capitalism

• Socialism and Planned Economies

  • Economic planning in socialism takes a different form than economic planning in capitalist mixed economies.
  • While many socialists advocate for economic planning as an eventual substitute for the market for factors of production, others define economic planning as being based on worker-self management, with production being carried out to directly satisfy human needs.
  • The command economy is distinguished from economic planning.
  • Socialism is an economic system characterized by social ownership, control of the means of production, and cooperative management of the economy.
  • A socialist economic system would consist of an organization of production to directly satisfy economic demands and human needs, so that goods and services would be produced directly for use instead of for private profit driven by the accumulation of capital.

• Capitalism in the U.S.

  • Democratic capitalism is a political, economic, and social system with a market-based economy that is largely based on a democratic political system.
  • The United States is often seen as having a democratic capitalist political-economic system.
  • The three pillars include economic incentives through free markets, fiscal responsibility, and a liberal moral-cultural system, which encourages pluralism.
  • This economic system supports a capitalist, free-market economy subject to control by a democratic political system that is supported by the majority.
  • States that have highly capitalistic economic systems have thrived under authoritarian or oppressive political systems.

• The Disadvantages of Socialism

  • Despite the theoretical benefits of socialist economic systems, there are also disadvantages that may arise in application.
  • Economic liberals and pro-capitalist libertarians see private ownership of the means of production and the market exchange as natural entities or moral rights which are central to their conceptions of freedom and liberty.
  • They, therefore, perceive public ownership of the means of production, cooperatives and economic planning as infringements upon liberty.
  • Critics from the neoclassical school of economics criticize state-ownership and centralization of capital on the grounds that there is a lack of incentive in state institutions to act on information as efficiently as capitalist firms because they lack hard budget constraints, resulting in reduced overall economic welfare for society.
  • Economists of the Austrian school argue that socialist systems based on economic planning are unfeasible because they lack the information to perform economic calculations in the first place, due to a lack of price signals and a free-price system, which they argue are required for rational economic calculation.

• Entrepreneurship and the Economy

  • Early economic theory, however did not pay proper attention to the entrepreneur.
  • Early thinkers such as Max Weber emphasized its occurrence in the context of a religious belief system, thereby suggesting that some belief systems do not encourage entrepreneurship.
  • Karl Marx considered the economic system and mode of production as its sole determinants.
  • Weber suggested a direct relation between the ethics and economic system as both intensively interacted.
  • The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics.

• Mixed Economies

  • The American School (also known as the National System) is the economic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century, and is an example of a mixed economy.
  • Under its influence, France experienced what is called Thirty Glorious Years of profound economic growth.
  • A mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.
  • It also served as the economic model during the later part of the Great Depression, World War II, and the post-war economic expansion (1945–1973), though it lost some influence following the tax surcharge in 1968 and the stagflation of the 1970s.
  • Restrictions are sometimes placed on private mail systems by mixed economy governments.

• The International Monetary Fund (IMF)

  • The IMF's stated goal was to stabilize exchange rates and assist the reconstruction of the world's international payment system post-World War II.
  • Countries contribute money to a pool through a quota system from which countries with payment imbalances can borrow funds on a temporary basis.
  • Voting power in the IMF is based on a quota system.
  • The IMF works to foster global growth and economic stability.
  • The IMF is mandated to oversee the international monetary and financial system and monitor the economic and financial policies of its 188 member countries.

• Marketing Information Systems

  • A marketing information system is a management information system designed to support marketing decision making.
  • It involves them in scanning newspaper trade magazines, business journals and reports, economic forecasts and other media.
  • A marketing information system is a management information system designed to support marketing decision making.
  • Jobber (2007) defines it as a "system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis. " Kotler, et al. (2006) define it more broadly as "people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. "
  • It is true today that in many organization an MkIS is integrated as part of a computerized system.