How economic systems attempt to allocate resources effectively?
In the modern world, There are three main economic systems work and they're different on different places i.e. in capitalist society free-market or mixed system work and some socialist societies still used the command economy system. A business organization uses different economic systems, according to the place where they are operating. The free market system where organizations are free to do whatever they like and there is very low government intervention.Organizations are free in decision making about their businesses.
In free market economics not only organizations are free to do whatever they like also laborers and suppliers also free to set their wages and prices on their services and goods. Organizations usually decide and make a decision on the basis of the market system. Companies also import and export products freely from one country to another country. In a command economic system where socialist society practice this system, government is responsible for all activities or government decide about the allocation land and capital. In this system, Government permission is required for all business activities. A government plan things on different levels, such as plans for resources in term of investment on current consumption and for the future while this investment depends on micro and macroeconomics strategies.
In the command system, a government not only responsible for investment, capital and resource also responsible for the allocation of labor according to their needs.However, In command system its good government takes responsibilities, but it’s not good for labor and consumers as they are not feeling free to work or buy things independently.
A mixed market system, both party business organizations and government can make agreements and decision making on different issues which is an important and protective system for both parties and it creates positive impact on society. United kingdom deal in an economic system which is mixed system.Where organizations and state both direct economy.
In this system organization are free to trade, however, the state also monitors different things.Desi burger is an example of a sole partnership where one person is own the company and it operates in the UK so the economic system will be mixed economy where a company must pay tax to the government and government rules and regulations also implement of the company’s operations.
In the modern world, There are three main economic systems work and they're different on different places i.e. in capitalist society free-market or mixed system work and some socialist societies still used the command economy system. A business organization uses different economic systems, according to the place where they are operating. The free market system where organizations are free to do whatever they like and there is very low government intervention.Organizations are free in decision making about their businesses.
In free market economics not only organizations are free to do whatever they like also laborers and suppliers also free to set their wages and prices on their services and goods. Organizations usually decide and make a decision on the basis of the market system. Companies also import and export products freely from one country to another country. In a command economic system where socialist society practice this system, government is responsible for all activities or government decide about the allocation land and capital. In this system, Government permission is required for all business activities. A government plan things on different levels, such as plans for resources in term of investment on current consumption and for the future while this investment depends on micro and macroeconomics strategies.
In the command system, a government not only responsible for investment, capital and resource also responsible for the allocation of labor according to their needs.However, In command system its good government takes responsibilities, but it’s not good for labor and consumers as they are not feeling free to work or buy things independently.
A mixed market system, both party business organizations and government can make agreements and decision making on different issues which is an important and protective system for both parties and it creates positive impact on society. United kingdom deal in an economic system which is mixed system.Where organizations and state both direct economy.
In this system organization are free to trade, however, the state also monitors different things.Desi burger is an example of a sole partnership where one person is own the company and it operates in the UK so the economic system will be mixed economy where a company must pay tax to the government and government rules and regulations also implement of the company’s operations.
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