Chapter 2.1, Problem 6R

To determine

Whether authoritarian or the democratic rule fits best for any economic system.

Answer to Problem 6R

Democratic rule fits best in each economic system as it is a system made by the people and for the people.

Explanation of Solution

When there comes the point of comparison between the political system for any economic system, authoritarian rules work totally centralized under the pressure of the government without any freedom to the public while the democratic rule in any economy provides the freedom to the people along with regulations of the government.

The people of the country or the economy are allowed with their rights along with the limits of the rules set in the constitution of the country.

Economics Concept Introduction

Introduction:

An authoritarian rule in an economic system can be defined as pure socialism in which the liberal and democratic concepts of freedom are rejected.

On the other hand, democratic rule in any economic system is a philosophy which is a decentralized form of economy & involves a socially owned economy with focus on political and economic democracy.