How does different economics system contribute towards the welfare and wealth of a country? Describe one economic system of a particular country and compare it with another economic system of another country.
Economics is one of the oldest disciplines among the humanities and it is categorized as a social science. Economics analyses the economic activity of people in order to satisfy their needs and desires. Human wants are the starting point of economic activity and provide the basics for economics. An economic activity refers to an activity that helps the people to achieve economic gains, which is a value in terms of money. Economics is how human use resources to produce goods and services. It is also a study of how people use their limited resources to fulfil their unlimited wants. Human beings have certain basic needs, for example, food, shelter and clothing. But a human being is never satisfied and will not be end to his wants.
There are 3 types of economy system. Different types of economic systems are used in different countries. Each economic system has their own way of contributing to their country welfare and wealth.
Economic system is the way of organizing the relationship among individuals, firms and government to make choices on the basic economics questions. There are 3 types of economic system which have been practiced: market economy, planned economy and mixed economy.
Market Economy/Laissez Faire/Capitalist/Free Market
A market economy is an economic system where individuals without government intervention take all the main economic decisions. Market economy is also termed as laissez faire economy where the term laissez faire came from the French word which means 'allow (them) to do'. In this market, buyers and sellers will meet and make the transaction without the involvement of government. Price system...