Econ 202-1 Summary
Principles of Microeconomics: ECON 202-01
“The Purpose of the Different Economies in our Society”
Raquel Moss
Mr. George L. Edwards
July 20, 2012
The Purpose of the different economies is so that society is able to answer the three questions: what, how and who to produce to. Because we live in a society full of scarcity, we face the economic problems of limited economic resources with that being the main issue. The society design and organized our economy into three different categories: Centrally Planned, Market and Mixed Economy. With this type of arrangement the world is able to keep some kind of balance in the market. In November 1917, Valdimir Lenin, established the first communist government and soon sought to take over …show more content…
Unlike in planned economies, their consumers ultimately decide what goods and services will be produced. The government has little intervention in this market because market economies primarily rely on privately owned firms to produce the goods and services for them. This is the best thing even though the government has little control, sometimes decisions are better made in a whole, than in the hands of one man. Although recently developed nations are known has market economies, they could and have been classified as a mixed economies also. This is because they allow market forces, they way of running the society, to drive most of their activities, only permitting government intervention to bestow that it is needed to provide stability. A mixed economy is where majority of the decisions are made by the interaction of consumers and also the government plays a significant role in the allocation of resources process. In other words, a mixture of the planned and market economy is where this economy falls, some industries are privately owned and others are publicly owned or nationalized. The mixed economic system combines capitalism and socialism in itself as a characteristic. Capitalism because they encourage businesses to create
“The Purpose of the Different Economies in our Society”
Raquel Moss
Mr. George L. Edwards
July 20, 2012
The Purpose of the different economies is so that society is able to answer the three questions: what, how and who to produce to. Because we live in a society full of scarcity, we face the economic problems of limited economic resources with that being the main issue. The society design and organized our economy into three different categories: Centrally Planned, Market and Mixed Economy. With this type of arrangement the world is able to keep some kind of balance in the market. In November 1917, Valdimir Lenin, established the first communist government and soon sought to take over …show more content…
Unlike in planned economies, their consumers ultimately decide what goods and services will be produced. The government has little intervention in this market because market economies primarily rely on privately owned firms to produce the goods and services for them. This is the best thing even though the government has little control, sometimes decisions are better made in a whole, than in the hands of one man. Although recently developed nations are known has market economies, they could and have been classified as a mixed economies also. This is because they allow market forces, they way of running the society, to drive most of their activities, only permitting government intervention to bestow that it is needed to provide stability. A mixed economy is where majority of the decisions are made by the interaction of consumers and also the government plays a significant role in the allocation of resources process. In other words, a mixture of the planned and market economy is where this economy falls, some industries are privately owned and others are publicly owned or nationalized. The mixed economic system combines capitalism and socialism in itself as a characteristic. Capitalism because they encourage businesses to create