What Is Economic System

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Table of Content Table of Content 1 TASK 1 2 a) Explanation on economics system attempt to allocate resources effectively. 2 b) Assessment on the impact of fiscal and monetary policy on business organisation and their activities. 9 c) Explain Malaysian competition policy and other regulation that may impact company. 15 TASK 2 17 a) Explanation on how market structures determine pricing and output decision of business. 17 b) Illustration on the way in which market forces shape organisational responses. 20 c) Judgement on how business and cultural environments shape the behaviour of your organisation. 21 Conclusion 22 REFERENCES 23 TASK 1 a) Explanation on economics system attempt to allocate resources effectively. What is economic…show more content…
(Economy Watch) Every economy has their own characteristic. For free market is there are many economic freedoms, there is competition among businesses, competition determines price which increase the quality of the product, economic decisions are made by the basic principles of supply and demand, and profit is the motive for increasing work rather than quotas. Mixed economy Mixed economy is combination from planned and free market economy. This economy system allows the private company use their capital. This economy system allows the government to interfere to the market. The resources are allocated from both the government and the private sector. In this system the freedom in the economic activities are influenced by the Government 's regulation and licensing policies. The example of the country that implemented this economy system is Iceland, Sweden, France, and United Kingdom. There are several advantages and disadvantages of the mixed economy system. The advantages are most business and industry can be left to private firms. This is because private firms tend to be more efficient than government controlled firms because they have a profit incentive to cut costs and be innovative. Second is government can pursue policies to provide macro-economic stability. The
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