Four Different Economic Systems and Which One I Think Best Suits South Africa's Mixed Economy

An economy could be considered the blood of a nation’s body; as everything flows smoothly, the body performs its functions properly. Two major types of economy in the world today are capitalist market economies and socialist command economies. Under a market economy, the people are granted the rights to free enterprise and build the economy through private business; they can create and trade products and services as they wish. Within a command economy, the government controls the land and capital and makes all the decisions involving economic issues. Both of these economies share some goals, but are also quite different in how each functions and each possess their own share of advantages and disadvantages.

Free enterprise and Command economies tend to contradict each other with the way they handle the production and growth with in an economy. But when a Mixed economy is into play these two different economies get combined. In this essay I will explain both of the economies and tell how they work together

United kingdom is a typical example of mixed economy where in which there is a balance between market forces and state intervention. The advantages of having mixed economy in the country are that these types of market allow competition amongst providers with regulations in place to protect society as a whole. With the government being present in the economy it brings a sense of security to sellers and buyers and it helps to bring stability in the economy. Whereas the disadvantages of mixed economy are unsuccessfully regulations may paralyze features of production. Lack of price control management can cause shortages in goods and can result in a recession. In mixed economy the resources are allocated on the basis of the private sector where goods and services are allocated on the market mechanism and the public sector where the government provides goods and services funded through tax revenue for the most part of the general public as a whole.

In the Mixed Economy System the government is involved. In the system the government offers certain services. For example, transportation and health care. Two disadvantages are limited service over time, very high taxes, and the benefits for services cost more and that could mean a larger cost for citizens all together. An advantage is the government meets basic needs and individual factors production. The history places are Iceland, Sweden, France, the United Kingdom, the United States.

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a

I prefer the Mixed economy because I think that it is the most balanced out of all three. The government controls some of the business and the population also has a chance to make a profit. There is also more freedom and more choices.

Shleifer discusses the success of the free market economic policies in his paper. He talks about the wonders the policies have done to the economies of Eastern Europe, Latin America, and China. In Eastern Europe, after the fall of the Soviet Union, governments there enacted smaller government budgets and smaller taxes. These policies have works to reverse the negative economic trend of the Soviet era, and turned into positive economic growth. In Chili, the policies their have allowed for a massive economic growth, and an overtaking of Argentina. The government in Chile also has ambitions, such as entering the economic playing field of Australia or New Zealand “Such talk might be ambitious, but it shows where free market policies got the Chileans” (CITATION). China is a massive economic success. The policies their brought hundreds of millions of people out of poverty and changed the world. Yet many people argue as to how this happened. Shleifer talks about how some people say it was the state

Every society should answer three economic questions, which are what to produce? , how to produce? , for whom to produce? The reason why a society should choose what to produce is because a product of one society’s choice is not necessarily the choice of the other choice. A society should decide how to produce goods, it is due to the fact that not all societies have the same resources, some societies may have a lot of people in them so, if they want to produce a good, they can use their human resources to accomplished their task, in the other hand societies with a low populations but a high amount of machines, can use their resources to finish their task. Some countries may be able to provide items that other countries can not, because

A state chooses its economic system by answering three important questions: what goods need to be produced, how will they be produced, and who are they being produced for? The two main economic structures used in the world today are command and market systems. In a command system, everything relating to the economy, such as production, employment, and wages, is controlled by a central planning authority in the government. The government decides what goods will be produced, how they will be priced, and who they will be distributed to. Command economies are designed to benefit the entire population rather than the individual consumer. On the other end of the spectrum is the market economy; government interference is kept to a minimum in this

The most common type of economy in the world today is a mixed economy. However, each country must decide for itself what the best mix of features is from each of the three other types of economies: traditional, command, and market. Imagine that you are setting up a mixed economy for your own nation. Write an essay (minimum three paragraphs) describing what this economy would be like. What features would you use from each of the three types of economies, and why? Be sure to support your choices with reasons and examples

Every society needs to develop an economic system that helps the government runs a country. This helps them to determine what goods are produced, how they are produced, who gets them, how to accommodate change, and how to promote technological progress. There two economic system: Command System and Market System. In the command system is also known as socialism or communism, the government control most of the property resources and economic decision occurs through a central economic plan. The central planning board determines production goals for each enterprise and specifies the amount of resources to be allocated to each enterprise so that it can reach its production goals. In the other hand Market System or capitalism is characterized by the private ownership of resources and the use of markets and prices to coordinate and direct economic activity. In this Market System, the owner of make their own decision and the government’s role would be limited to protecting private property.

In my option, the mixed economy is the best option as individuals can take advantage of a free-market system and have government regulation to protect consumers for example Federal Trade Commission to enforce antitrust laws. The force

There are three main economies in the world today, market economies, traditional economies, and command economies. Comparing these three economies shows the major differences between them. Each one has its own advantages and disadvantages. They all have different ideas about who controls and owns all resources. They all have very good ideas and maybe some areas that need

In economy, societies have to make a choice of which system they will apply in their situation. These economic systems are chosen based off of how the society answers three economic questions. These three economic questions are: “What goods should be produced?” “How should they be produced?” And “From whom will it be produced?” Two of the most commonly seen systems in our world are command economies and market economies. Both which work in different ways and have different advantages and disadvantages that come with them. However only one of them can be better. In the following paragraphs, research done will show how both systems work, their advantages and disadvantages, and which system is better based off it.

The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.