Everything about Economic System totally explained
An
economic system is a particular set of
social institutions which deals with the
production,
distribution and
consumption of
goods and
services in a particular
society. The economic system is composed of
people and
institutions, including their relationships to productive resources, such as through the
convention of
property. In a given
economy, it's the systemic means by which problems of
economics are addressed, such as the
economic problem of scarcity through allocation of finite productive resources. Examples of contemporary economic systems include
capitalist systems,
socialist systems, and
mixed economies.
Economic systems is the that includes the study of respective systems.
Overview
-An economic system is a set of methods and standards brought by which a society decides and organizes the
ownership and
allocation of
economic resources. At one extreme, production is carried in a
private-enterprise system such that all resources are privately owned. It was described by
Adam Smith as frequently promoting a social interest, although only a private interest was intended. At the other extreme, following
Karl Marx and
Vladimir Lenin is what is commonly called a pure-communist system, such that all resources are publicly owned with an intent of minimizing inequalities of wealth among other social objectives.
Alternatively, 'economic system' refers to the organizational arrangements and
process through which a
society makes its
production and
consumption decisions. In creating and modifying its economic system, each society chooses among alternative objectives and alternative decision modes. Many objectives may be seen as desirable, like
efficiency,
growth,
liberty, and
equality.
Part of a social system
An economic system can be considered a part of the social system and hierarchically equal to the law system, political system, cultural system, etc. There is often a strong correlation between a certain ideologies, political systems and certain economic systems (for example, consider the meanings of the term "communism"). Many economic systems overlap each other in various areas (for example, the term "mixed economy" can be argued to include elements from various systems). There are also various mutually exclusive hierarchical categorizations.
Basic types Economic systems
The basic and general economic systems are:
There are several basic and unfinished questions that must be answered in order to resolve the problems of economics satisfactorily. The scarcity problem, for example, requires answers to basic questions, such as:
what to produce,
how to produce it, and
who gets what is produced. An economic system is a way of answering these basic questions. Different economic systems answer them way different.
Division of economic systems
Typically, "hands-on" economic systems involve a greater role for
society and/or the
government to determine what gets produced, how it gets produced, and who gets the produced
goods and
services, with the stated aim of ensuring
social justice and a more equitable distribution of
wealth (see
welfare state).
Meanwhile, "hands-off" that means dont touch an one and keep your hands to your self economic systems give more power to private individuals (and perhaps
corporations) to make those decisions, rather than leaving them up to society as a whole, and often limit government involvement in the economy.
The primary concern of "hands-on" economic systems is usually
egalitarianism, while the primary concern of "hands-off" economic systems is usually
private property.
Libertarians target individual
economic freedom as a primary goal of their "hands-off" policies.
The following list divides the main economic systems into "hands-on" and "hands-off," it attempts to structure the systems in a given section by alphabetical order and in a vertical hierarchy where possible.
"Hands-on" systems
Communism
Socialism
Feudalism
"Hands-off" systems
Capitalism
Gift economy
Mutualism (a form of libertarian socialism)
Non-property system
"Compromise" systems
Distributism
Georgism
Mixed economy
List of economic systems by Name
An etymologist's approach to economic systems, this list attempts to sort all possible economic systems in alphabetical order, without any division or hierarchization.
American School
Anarchism
Anarcho-capitalism
Anarcho-communism
Autarky
Barter economy
Buddhist Economy
Capitalism
Colonialism
Command economy
Communism
Coordinatorism
Corporate capitalism
Digital Economy
Distributism
Dirigisme
Fascist socialization
Feudalism
Gift economy
Green economy
Hydraulic despotism
Inclusive Democracy
Information economy
Internet Economy
Islamic economics
Japanese System
Knowledge Economy
Libertarian communism
Libertarian socialism
Market economy
Market socialism
Marxian economics
Mercantilism
Mixed economy
Mutualism
Natural economy
Neo-colonialism
Network Economy
Nordic model
Parecon
Participatory economy
Planned economy
Progressive Utilization Theory
Resource based economy
Self-management
Social market economy
Socialism
Socialist market economy
Subsistence economy
Traditional economy
Virtual economy
Further Information
Get more info on 'Economic System'.
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