English, asked by praveenshriwas1974, 6 months ago

Explain various types of economy and economic system​

Answers

Answered by sgargbhel
3

Explanation:

An economic system is a mechanism with the help of which the government’s plan and allocate accessible services, resources, and commodities across the country. Economic systems manage elements of production, combining wealth, labour, physical resources, and business people. An economic system incorporates many companies, agencies, objects, models, as well as for deciding procedures.

Types of Economic System

Capitalist Economy- In a capitalist system, the products manufactured are divided among people not according to what people want but on the foundation of Purchasing Power—which is the ability to buy products and services. Which means an individual needs to have the money with him to buy the goods and services. The Low-cost housing for the underprivileged is much required but will not include as demand in the market because the needy do not have the buying power to back the demand. Therefore, the commodity will not be manufactured and provided as per market forces.

Socialist Economy- This economy system acknowledges the three inquiries in a different way. In a socialist society, the government determines what products are to be manufactured in accordance with the requirements of society. It is believed that the government understands what is appropriate for the citizen of the country, therefore, the passions of individual buyers are not given much attention. The government concludes how products are to be created and how the product should be disposed of. In principle, sharing under socialism is assumed to be based on what an individual need and not what they can buy. A socialist system does not have a separate estate because everything is controlled by the government.

Mixed Economic – Mixed systems have characteristics of both the command and market economic systems. For this purpose, the mixed economic systems are also called as dual economic systems. However, there is no sincere method to determine a mixed system. Sometimes, the word represents a market system beneath the strict administrative control in certain sections of the economy.

Economic Sector

The economic sector is divided into three economic sectors

Primary Sector: It is that sector which relies on the environment for any production or manufacturing. Few examples of the primary sector are mining, farming, agriculture, fishing, etc.

Secondary Sector: In this sector, the raw material is transferred to a valuable product. Few examples are construction industries and Manufacturing of Steel, etc.

Tertiary Sector: It is also known as Service Sector, and includes production and exchange of services. Few examples are banking, insurance, transportation, communication, etc.

Answered by tishagupta10
0

Meaning of Economic System

An economic system is a mechanism with the help of which the government’s plan and allocate

accessible services, resources, and commodities across the country. Economic systems manage

elements of production, combining wealth, labour, physical resources, and business people. An

economic system incorporates many companies, agencies, objects, models, as well as for

deciding procedures.

Types of Economic System

Capitalist Economy- In a capitalist system, the products manufactured are divided among people

not according to what people want but on the foundation of Purchasing Power—which is the

ability to buy products and services. Which means an individual needs to have the money with

him to buy the goods and services. The Low-cost housing for the underprivileged is much

required but will not include as demand in the market because the needy do not have the buying

power to back the demand. Therefore, the commodity will not be manufactured and provided as per market forces.

Socialist Economy- This economy system acknowledges the three inquiries in a different way. In a

socialist society, the government determines what products are to be manufactured in

accordance with the requirements of society. It is believed that the government understands what

is appropriate for the citizen of the country, therefore, the passions of individual buyers are not

given much attention. The government concludes how products are to be created and how the

product should be disposed of. In principle, sharing under socialism is assumed to be based on

what an individual need and not what they can buy. A socialist system does not have a separate

estate because everything is controlled by the government.

Mixed Economic – Mixed systems have characteristics of both the command and market

economic systems. For this purpose, the mixed economic systems are also called as dual

economic systems. However, there is no sincere method to determine a mixed system

. Sometimes, the word represents a market system beneath the strict administrative control in

certain sections of the economy.

Economic Sector

The economic sector is divided into three economic sectors

Primary Sector: It is that sector which relies on the environment for any production or

manufacturing. Few examples of the primary sector are mining, farming, agriculture, fishing, etc.

Secondary Sector: In this sector, the raw material is transferred to a valuable product. Few

examples are construction industries and Manufacturing of Steel, etc.

Tertiary Sector: It is also known as Service Sector, and includes production and exchange of

services. Few examples are banking, insurance, transportation, communication, etc.

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