5 Famous Economic Systems In The World

The economic system, or economic system, is the method that a society uses to determine how it will distribute its resources to meet its needs. Sounds a bit difficult, isn’t it? The wealth of this world is very limited. If there is no proper use and control of these limited resources, then there will be catastrophic economic, social, family problems. For example, our country has an abundance of gas but it is also limited and limited. Our government has complete control over gas. Now if the government gives it to a few people without control over it, then it will be seen that some people are using the will of the gas as a way to separate the economic system from one economic system to another by controlling the business of factors, Mutual understanding between government and consumers. To understand what economic system is operating in such a society, you have to look at how much the government controls the factors of production and the extent of the people’s control, what is the role of the businessmen in producing the products as per consumer demand and the role of the government. We will now discuss the economic systems that are prevalent in the present world.

Capitalism or Capitalism: Capitalism is an economic system where the factors of production are controlled by the people. The father of the idea is Adam Smith. In his book ‘Wealth of Nations’, he wrote the first idea in the eighteenth century that the American economic system was the capital of Peor, or the market economy, where economic decisions or economic decisions demanded and the market forces of supply were determined. The following questions on such an economic system

  • What will be produced?
  • How much will be produced?
  • Who will produce?
  • What will be the cost of production?
  • Who will enjoy these?

The market is determined by the consumers. Consumer capital demand or demand for products increases when the price of a commodity goes down. This is a very normal stage of human nature where if I find something at a lower price I will buy it more. The government does not interfere in such systems. The producer produces as much as he sells, and the buyer and the buyer buy as much as he has.

Mixed Capitalism: With the change of time, mixed capitalism has emerged in the American economy. Mixed capitalism is essentially an economic system based on the market economy in which there is limited form of government intervention. In mixed capitalism, the government has two economic tools: the power to impose a tax and the power to spend that tax. The government collects funds from the people through taxation and spends the tax money in the military, transport, education, infrastructure and public welfare sectors. Mixed capitalism exists in the economy of Bangladesh, India.

Communism or CommunismAnother economic system is communism. It is an economic system where the Factors of Production are controlled by the government. Land, labor and capital are under the control of the government and the government itself is zealous in the field of entrepreneurship. In this case, there are economic decisions such as production, distribution, consumption, and ownership of property. The answers to the questions I mentioned in Poor Capitalism are under the control of the government. That is, the government decides what will be produced, how much will be produced, who will produce it, how much will it cost to produce, who will enjoy it. Demand and supply have no impact on this type of economy. The central government’s policy makers make all decisions regarding the production and distribution of goods. Private enterprise system is discouraged in communism but in many cases it does not exist. China, Vietnam, Cuba, Communism currently exists in North Korea. However, the communism of Peor seems to be in no country nowadays.

Socialism or Socialism: Socialism is an economic system where most are owned by individuals but are governed and controlled by the main industries. There are certain products and services that should be available to all people except those who have enough money, based on the belief that the government controls and operates this. For example, in Sweden, the government controls and controls the transport, communication, banks, mineral resources, steel and pharmaceutical industries in Sweden.

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