LaborCapital Land
Production Consumption Manufacturing Regulation Distribution Circulation
Economic Systems mainly deals with the relationship between production (Supply) and Consumption (Demand).
1.Capitalism 2.Socialism 3.Mixed Economy 4.Communism
Form of economy in which all the factors of production are owned operated and controoled by the private owners is called Capitalism.
Pros: 1.Free Market Economy(Lassez Faire Economy) 2: Competition 3: Profit as per Hard work & Intelligence 4: More Activity 5: More Productivity 6: FDI
Cons: Haves & haves not 2: What about Social welfare? 3:Lack of Job security The United States and Japan are examples of a Capitalist Economy
The Form of economic system in which all the factors of production are owned operated and controlled by the state. social and economic economic doctrine that calls for public rather than private ownership or control of property and natural resources. According to the socialist view, individuals do not live or work in isolation but live in cooperation with one another. Furthermore, Furthermore, everything that people produce is in some sense a social product, and every one who contributes to the production of a good is entitled to a share in it. Society as a whole, therefore, should own or at least controlproperty for the benefits
Pros: 1: Classless society 2: Social welfare 3: Employment for all 4: Good for lovers 5: Price control by state 6: Low cost of Production
Cons: 1: Laziness 2: Corruption 3:absence of competition 4: Monopoly, Monopsony & Oligopoly 5: Enforcement by force Canada, Germany, Sweden, Australia and Great Britain are all examples of socialist economies
Form of economy which is partly privatized and partly public. It is the combination of both systems. India and Russia
Combination of Market and Command economic systems Market forces control most consumer goods Government directs industry in need areas
Communism - Marxism &The Communist Manifesto Communism, which is also described as "Revolutionary Proletarian Socialism" or "Marxism," is both a political and economic philosophy. The strictest form of socialism is called Communism
Controlled by strong, centralized government Usually focuses on industrial goods Little attention paid to agriculture and consumer goods Cuba, North Korea, and China are examples