Week 1 Assignment - C. Hanley

docx

School

American Public University *

*We aren’t endorsed by this school

Course

401

Subject

Economics

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by courtneyhanley2

1 Economic Concepts Economic Concepts Courtney B. Hanley American Public University ECON301: Comparative Economics Jamie Gladfelter November 12, 2023

2 Economic Concepts Economic Concepts Economic systems are essential for regulation of means of production, distribution, and consumption. Throughout the world, there are many economic systems, but they can be categorized into three major groups. These include a free-market capitalist economic system, a command socialist economic system, and a mixed market economic system (Pryor, 2006). Ethics, politics, and culture play important roles in how these systems work for their economy and which system each government will choose to follow (Rosefielde, 2002). Free Market Capitalist Economic System In a capitalist economy, the laws of supply and demand alone determine prices. For example, when the demand for meat went up in the United States and the supply was down, meat factories would be able to elevate their prices to meet the demand and in turn, increase profits. This is also true for the latter. On the one hand, if the demand for another product like peanut butter decreases, this will cause the price of peanut butter to fall, and production may decline. When production declines, this means that profits decline. This can eventually cause businesses to close their doors due to not being able to sustain the economic changes they are faced with. On the other hand, in a capitalist economy, these companies could change up the product they are supplying in order to pivot and once again gain control over their profit margins. This is the opposite of how a socialist economic system operate. However, a fully capitalist market is very hard to come by. Command Socialist Economic System A socialist economy is based on the public ownership of the means of production. Socialists argue that shared ownership of resources along with central planning provides a more equal distribution of good and services to the public. This economic system states that value comes

3 Economic Concepts from the amount of time a person works instead of focusing value on the product being produced. In a socialist economy, the government determines the prices and products being produced. One of the downfalls of a socialist economy is that individuals are highly reliant on the government. For example, individuals tend to expect and rely on the government to provide basic necessities including healthcare, food, and more. An example of a socialist economy would be China. China has a labor-abundant economy that follows a capital-intensive socialist strategy. They focus on a labor-intensive strategy and see explosive benefits due to this type of structure (Naughton, 2010). Mixed Market Economic System. Many economies operate under a mixed market economic system. This type of economy takes parts of a capitalist economic system and a socialist economic system and marry the two to get the best of both worlds. It was designed to push economic activity through capitalist ventures in order to offer services to the public including education, social welfare policies, and health services. In this type of economy, private ownership controls most of the production, while the government controls the regulations. Mixed market systems implement policies that help to level out economic downturns. This allows the government to monitor profits and execute redistribution of wealth in order to regulate business and provide an appealing level of living for the greatest number of people. Conclusion Different economic systems can be found around the world, but they can be categorized into three major systems which include a capitalist system, socialist system, and a mixed system. The government, coupled with ethics, politics, and culture, decide which system to follow and how to follow it for the benefit they see best fit for their society. There are pros and cons to each type of system, but overall each system works in ways to help the economy function efficiently.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 Economic Concepts References Naughton, B. (2010). China’s Distinctive System: can it be a model for others? Journal of Contemporary China , 19 (65), 437–460. https://doi-org.ezproxy2.apus.edu/10.1080/10670561003666079 Pryor, F. L. (2006). Economic Systems of Developing Nations. Comparative Economic Studies, 48 (1), 77. https://doi.org/10.1057/palgrave.ces.8100072 Rosefielde, S. (2002). Comparative economic systems: Culture, wealth, and power in the 21st century . John Wiley & Sons, Incorporated.

Related Documents

Comparing Economic Systems.docx

Final2021_A_solutions.pdf

IMG_6882.jpeg

CircularFlowModel_Worksheet (2).docx

ECO 108.docx

Week 6.pptx

Week 3 Assignment - C. Hanley .docx

Week 2 Assignment - C. Hanley .docx

2237Assignment1OPM400VerC 2 (1).xlsx

PS444.pdf

PS111.pdf

Lesson 12 Concept Test.docx

Recommended textbooks for you

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Micro Economics For Today

Economics

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Cengage,

Economics For Today

Economics

ISBN:9781337613040

Author:Tucker

Publisher:Cengage Learning

Survey Of Economics

Economics

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Cengage,

Microeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Macroeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning