Economics

Generally, every economic system can be classified as a traditional, command, or market economy.

TRADITIONAL: The 3 questions (what, how and who) are decided on the basis of customs, social patterns, religion or other ideas handed down through time.

MARKET: Here the major decisions regarding the 3 questions are made by individual consumers, businesses and, to a very minor extent, government. Buyers and sellers make their decision known in the market place.

PUBLIC (COMMAND): Here the major decisions to the economic questions are made by the government on behalf of the citizens it serves. The power of the government in such decisions varies.

1. Identify if it involves a What, How, or Who question.

2. 2. Identify if the decision reflects what you would find in a Traditional, Public (command), or Market economic system.

A. The Catholic Church opposes the development of a female condom.

B. A law makes it illegal for a landlord to consider race as a factor in determining who he/she may rent his/her apartment to. Hint

C. A local ordinance outlaws the sale of assault weapons.

D. Gun production is up in the U.S. in response to increased demand.

E. At Momas Pizza, she makes her pies the old fashioned way.

F. Wealthy Americans often send their children to private schools.

G. Government requires more testing of silicone breast implants before they can be put on the market.

H. G.I. Joe advertisements appear on shows that have primarily boy viewers.

I. Women in the U.S. earn 70 cents for every dollar a man makes.

J. The government controls the development of nuclear power plants.

K. An automobile manufacturer lays-off workers and replaces them with robots that lower production costs.

L. Since sarah, like 40 million other Americans, is poor, she cannot afford an abortion.

M. A manufacturer decides to dump his/her company’s waste into the Hudson River in an effort to keep production costs low.

Various type of economic system over the world are as follows:

Market Economy:

The Market Economy system is being accepted by most of the countries over the world following the success of western countries such as USA, Canada and Others. In a market economy system both buyers and sellers play a significant role and prices are determined through demand and supply interaction.

Political Economy:

In a world environment where acceptance of neo-liberalism is rising very fast, the relevance of political economy is well meant for bringing world powers together. Find detailed on global political economy dealing with global trade, finance, and other monetary and fiscal policies.

Global Economy:

The Global Economy has made a significant shift in its agriculture related economic activities to services related activities. It has also experienced a faster rate of growth in its Gross Domestic Product. Find detailed on the trend of global economy, global exports, global economic indicators and globalization economy.

Mixed Economy

Mixed Economy is such a type of economic system, where both capitalist economic norms as well as socialist economic norms exist. Both Private economic freedom and centralized planning co-exist.

Capitalist Economy:

A Capitalist Economy can be defined as a type of economic activity, where the means of production are mainly owned by the private owners. A higher degree of consumer's freedom exists in such types of markets.

Socialist Economy:

Socialist Economy is a type of economic system where the means of production and distribution are made by the public authority or the Government. Such type of economy can be defined as a centrally planned economy.