Economic Final Report Term Paper

Download this Term Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Term Paper:

Economic Systems:

An economic system is basically described as specific set of principles that addresses the production, distribution, and consumption of products and services. The involved parties in the production, distribution, and consumptions processes are usually determined by or dependent on the economic system. Throughout the history of humanity, different types of economic systems have evolved because different societies have placed varying emphasis on distinctive goals and priorities as part of their efforts to obtain answers to certain economic questions. In addition, the difference in economic systems is fueled by the tendency by different societies to develop very broad economic approaches to manage their resources. One of the main reasons for the development of different economic systems is to address the challenge of scarcity. The challenge of scarcity is an essential problem that confronts individuals and nations. While there are four major types of economic systems recognized by economists, there are still huge disagreements on the system that effectively addresses the challenge of scarcity.

Types of Economic Systems:

As previously mentioned, there are different types of economic systems that have been developed by different societies to deal with the challenge of scarcity. The four basic types of economic systems that are generally recognized by economists are & #8230;

Traditional Economic System:

A traditional economic system is basically fueled by customs and inheritance through which skills and techniques are passed down from generation to generation ("Economic Systems," p.2). As a result of inheritance of skills and methods, the entire community works toward the realization of a common good. Moreover, individuals' activities, the production of goods and services, and the exchange and use of resources tend to follow long-established patterns in the traditional economic system. Unlike other economic systems, the traditional economic system is not very dynamic to an extent that it's characterized by static standards of living. This characteristic emanates from the fact that individuals do not enjoy occupational or financial mobility since their economic relationships and behaviors are predictable.

With regards to resolving resource allocation issues, community interests take precedence over the individual in the traditional economic system ("Types of Economic Systems" par, 5). As a result, people may be expected to merge their efforts and share equally in the proceeds of their labor in order to address the underlying resource allocation issues. In some cases, there is respect for certain types of private property though some limits are established by a strong set of obligations that people owe to the whole community. Since the traditional economic system places significant interest on the entire community, the government play very minimal role in governing these systems. These systems were mainly used during the pre-colonial periods and are currently found among Australian aborigines.

Command or Planned Economic System:

This type of economic system is one where resources and business activities are fully controlled by the state or government ("Economic Systems," p.2). These activities such as the production of goods and services are determined by the central government or state because it usually owns the means of production. One of the major characteristics of command or planned economic system is that production does not necessarily reflect the demands of consumers because of governmental control and decision making. Secondly, the state or central government makes decisions on what to produce, how to produce them, and for whom to produce through its planners. Some major examples of countries with command or planned economic systems include China, Cuba, and the former Soviet Union.

In relation to dealing with resource allocation issues, such challenges are usually addressed by government planners. The government planners deal with the issues by making assumptions on the needs of consumers and the mix of goods and services. Since this type of economic system is controlled by the government, the government has three major roles. These roles include making the most economic decisions and giving economic commands, addressing the entire production process for several industries, and employing workers.

Market or Free Enterprise Economic System:

This is an economic system in which individuals and businesses have total freedom on what to purchase and produce. Therefore, the production of goods and services in this economic system is determined consumers' demand. The first characteristic of a free enterprise economic system is that decisions regarding the production of goods and services are determined by the demands of consumers. Secondly, economic activity in this type of economic system is dependent on the consumption choices of consumers. Third the production means and processes are…[continue]

Cite This Term Paper:

"Economic Final Report" (2013, March 18) Retrieved November 29, 2016, from

"Economic Final Report" 18 March 2013. Web.29 November. 2016. <>

"Economic Final Report", 18 March 2013, Accessed.29 November. 2016,

Other Documents Pertaining To This Topic

  • Economic Final Report

    Economic Final Report Types of economic systems Economic systems vary from one nation to another. Traditional economic systems refer to an economic system founded by tradition. The services and goods that people provide through the work they do, how people exchange and use the resources are trends that follow permanent patterns. These are not dynamic economic systems because there are minimal changes. In this economic system, people live on static standards. They

  • Cango Final Report REV2 in

    Primarily, the market for CanGo Inc. will be segmented in two ways, which include gender and age groups. Segmentation according to income groups cannot be used because all services provided by CanGo Inc. will be easily affordable by all income groups since the company cannot afford to charge high prices due to competitive pressures. Many services such as gaming will also be provided for free. Marketing Mix The marketing mix of

  • Economic Issues of Student Achievement in a Non Profit School Environment...

    Economic Issues of Student Achievement in a Non-Profit School Environment The objective of this work in writing is to examine the economic issues of student achievement in a non-profit school environment. Toward this end, this work will examine literature across many areas of study to produce a synthesis of the information and knowledge available on the economic impacts of achievement among students who attend a non-profit school. Examined will be issues

  • Economic Crisis the Revelation of the Financial

    Economic Crisis The revelation of the financial crisis that unfolded in United States in 2008 is considered to be the worst economic crisis since the Great Depression, 1929. The distinctive causative factors that have contributed to the U.S. economic crisis 2008- 2009 are differentiated by aggravated financial control, higher risks in capital investment, the housing bubble phenomena in relation to the brisk credit expansion. The aggregation of these factors in the

  • Economics Mexico How Interest Rates Can Be

    Economics Mexico; How Interest Rates Can Be Used to Manage an Economy The management of the economy, undertaken with strategies from the government and decision fro the central bank, is usually undertaken with the aim of promoting and supporting a stable economy, balancing the desire for sustainable growth with the need to constrain inflation. This is an issue faced by almost all countries; inflation can be harmful to an economy, impacting not

  • Economic Events 1980 1989 the Decade of Greed

    Economic Events: 1980-1989 the decade of greed. The era of Ronald Reagan when the rich got richer and the poor got poorer. Despite this common wisdom, 1980 started off auspiciously. On May 8, 1980 the World Health Organization hailed "one of the century's greatest medical accomplishments," the final and total eradication of smallpox (Dickson 247). But how quickly times change - barely a quarter century has passed and this same disease

  • Economic Impact of Katrina Impact

    This is a pattern that is relatively consistent over a long time period (Clayton & Spletzer, 2006). The only difference in 2005 was that unemployment claims did not rise in the fourth quarter with the drop in jobs, as they had done in the past. It is difficult to draw definitive conclusions as to where these employees went in the fourth quarter of 2005. To do so would be filled

Read Full Term Paper
Copyright 2016 . All Rights Reserved