Economic Systems
Economic system is the method used by a society to produce and distribute goods and services. When it comes to economic systems they have to consider a few questions. What goods and services to produce? How will they get produce them? Who will get them? How much will they produce now,and later? there is different types of economic systems.
The firs type of system is traditional economy where the economic questions are answered by "habits and customs". In other words the child works the same job the parents work in (developing countries). The second type is command economy where the government answers the basic economical questions. The advantages of this is that it provides for all people equally but the disadvantages is that it is inefficient and it has no incentives to work or be creative(Communist countries). Last but not least is the there system free market economy where the economic questions are answered by the individual buyers and sellers. In this system supply and demand influences the economy, people act out of self interest,motives for profit (money) drives the economy also known as free enterprises or capitalism(united states).
The firs type of system is traditional economy where the economic questions are answered by "habits and customs". In other words the child works the same job the parents work in (developing countries). The second type is command economy where the government answers the basic economical questions. The advantages of this is that it provides for all people equally but the disadvantages is that it is inefficient and it has no incentives to work or be creative(Communist countries). Last but not least is the there system free market economy where the economic questions are answered by the individual buyers and sellers. In this system supply and demand influences the economy, people act out of self interest,motives for profit (money) drives the economy also known as free enterprises or capitalism(united states).
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