Poor people get small loans from specialized organizations in developed countries which they invest in small businesses and repay with interest, after repayment such people become eligible to avail the loan once again, such organizations also provide saving account facilities and insurance against losses, in addition the existence of free market encourage people to start their own businesses and the prices are fixed by the market forces, in such a way poor people are getting advantage through such organizations and free markets. Characters in the case: Specialized organizations giving loans to poor and poor people of developed nations. Adequate information: Mixed economy is scene in almost all countries where, countries with capitalist economies are moving towards socialist economies and countries with socialist economies are moving towards capitalist economies, and capitalist economy is a type of economy where the markets are free and economic decisions are taken by the market forces. To determine: The basic difference between capitalism and mixed economy, and the type of economy that exists in the U.S.

Question

1. What is economics, and how can you benefit from understanding basic economic concepts? 2. Compare and contrast the world’s major economic systems. Why is capitalism growing, communism declining, and socialism still popular?

Answer 1

Question

Chapter 2, Problem 3VC

Summary Introduction

Case summary: Poor people get small loans from specialized organizations in developed countries which they invest in small businesses and repay with interest, after repayment such people become eligible to avail the loan once again, such organizations also provide saving account facilities and insurance against losses, in addition the existence of free market encourage people to start their own businesses and the prices are fixed by the market forces, in such a way poor people are getting advantage through such organizations and free markets.

Characters in the case: Specialized organizations giving loans to poor and poor people of developed nations.

Adequate information: Mixed economy is scene in almost all countries where, countries with capitalist economies are moving towards socialist economies and countries with socialist economies are moving towards capitalist economies, and capitalist economy is a type of economy where the markets are free and economic decisions are taken by the market forces.

To determine: The basic difference between capitalism and mixed economy, and the type of economy that exists in the U.S.

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