Economic System :: essays research papers

Economic SystemA countrys economic system consists of the structure and processes that it uses to whollyocate its resources and conduct its commercial activities.Types of Economic Systems- Centrally planned economic system - Mixed economy - Market economyCentrally planned economySystem in which a realms resources are owned by the government.Origins the ideology that the welfare of the group is more(prenominal) important than individual(a) well being. (Karl Marx). parentage In the 80s nations began to dismantle communist central planning in favor of market found economy. Failures -economic value ,Provide incentives, Achieve rapid growth, Satisfy Consumer needs.Mixed economyEconomic system in which resources are more equally divide between secret and government ownership.Origins the idea that a successful system must be not only efficient and innovative but should also protect society.Decline mixed economies are converting to market system. (Privatization).Market EconomyThe m ajority of nations resources are privately owned. Economic decisions are determined by supply and demand.Origins the belief that individual concerns should be placed above group concerns.Features free choice, free enterprise and price flexibility.Governments role enforcing antitrust laws, preserving property rights, providing a stable fiscal and financial environment and preserving political stability.Development of nationsThe economic development is a measure of gauging the economic well being of one nations people as compared with that of another nations people.National development indicators- national harvest-feastion- purchasing power parity - human developmentNational ProductionGross national reaping value of all goods and services produced by country during a one year period, including income generated by both domestic and international activities.Gross domestic product value of all goods and services produced by a countrys domestic economy over one year period.GDP or gross national product per capita nations GDP or GNP divided by its population.Purchasing Power Parity Purchasing power the value of all goods and services that can be purchased with one unit of a countrys currency.Purchasing power parity is the relative ability of two countries currencies to buy the same basketball hoop of goods in those two countries.Human Development Human development indexThe measure of the extent to which a peoples needs (healthy life, education, decent standard of living) are conform to and the extent to which this needs are addressed equally across a nations entire population.Classifying countriesDeveloped highly industrialized and efficient countries that amaze a high quality of life.-USA,France, Italy, Canada..Newly industrialized recently increased the portion of its national production and exports from industrial operations ( emerging markets actual + newly industrialized).