-The possession of capital and
-The suit of decision 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 limited 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 societys economic decisions according to a national plan. The collective good, or public interest, is the think guiding force behind the central planners decisions.
According to the type of decision making we distinguish:
Market scrimping- A market economy is a type of economic system in which the trading and exchange of goods, services and info takes place in a free 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 will determine the price of goods and services, and this information will be made available to all participants. Businesses give notice decide which goods to produce 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 planned economy, where the government decides what to produce, in what quantity, and to be change at what price.
The main characteristics of a market economy are its flexibility and decentralized nature. This type of economic system is more apt to cope up with ever-changing market trends, making it faster and more reactive.
Command economy- also called planned economy, is in a flash controlled by the government. The state owns all property and controls all resources...If you regard to get a full essay, order it on our website: Orderessay
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