economic systems
Economic Systems
Devry University
Intro to Business and Technology
BUSN-115-14398
Economic Systems
The roles that Individuals, businesses, and the government play in allocating a society’s resources depend on the society’s economic system. This system is a basic set of rules for allocating the country’s resources to satisfy its citizens’ needs. Economic systems are generally categorized as either free market systems (capitalism) or planned systems (socialism and communism). Except for the theoretical extremes, the lines of each system tend to be a bit blurred (Bovee & Thill, 2013). Capitalism is where the citizens have private ownership of production means. This means that an individual is free to produce, and sell their product or services how they see fit. Communism is where the government controls all recourses of production while the citizens all make an equal wage regardless of the carrier field they work in. Socialism lies somewhere in between the two. The government ownership focuses on vital industries for the common welfare of that nation, while private ownership is allowed in other industries (Bovee & Thill, 2013, p. 29). In this paper we will evaluate and analyze some different situations, determine which economic systems would work best in the situation and why.
Which Economic System is Best Suited for Handling a Crisis of Epic Proportions?
The key to any economic system responding to a crisis of epic proportions would be to have PACE plan for every situation that may happen. A PACE plan stands for primary, alternate, contingency, and emergency; basically four different plans of attack on the same situation. Now considering every economy/nation is reactive this never happens. A Planned system would be best due to the fact the government controls some or all of the nation’s vital resources. By controlling the resources one person can dictate how to deal with the crisis by responding with the nation’s resources. The more
Devry University
Intro to Business and Technology
BUSN-115-14398
Economic Systems
The roles that Individuals, businesses, and the government play in allocating a society’s resources depend on the society’s economic system. This system is a basic set of rules for allocating the country’s resources to satisfy its citizens’ needs. Economic systems are generally categorized as either free market systems (capitalism) or planned systems (socialism and communism). Except for the theoretical extremes, the lines of each system tend to be a bit blurred (Bovee & Thill, 2013). Capitalism is where the citizens have private ownership of production means. This means that an individual is free to produce, and sell their product or services how they see fit. Communism is where the government controls all recourses of production while the citizens all make an equal wage regardless of the carrier field they work in. Socialism lies somewhere in between the two. The government ownership focuses on vital industries for the common welfare of that nation, while private ownership is allowed in other industries (Bovee & Thill, 2013, p. 29). In this paper we will evaluate and analyze some different situations, determine which economic systems would work best in the situation and why.
Which Economic System is Best Suited for Handling a Crisis of Epic Proportions?
The key to any economic system responding to a crisis of epic proportions would be to have PACE plan for every situation that may happen. A PACE plan stands for primary, alternate, contingency, and emergency; basically four different plans of attack on the same situation. Now considering every economy/nation is reactive this never happens. A Planned system would be best due to the fact the government controls some or all of the nation’s vital resources. By controlling the resources one person can dictate how to deal with the crisis by responding with the nation’s resources. The more
References: 2010 Haiti earthquake. (2010). Retrieved from http://en.wikipedia.org/wiki/2010_Haiti_earthquake Bovee, C., & Thill, J. (2013). Understanding basic economics. In S. Yagan (Ed.), Business in Action (6th ed., pp. 28-45). [Bookshelf]. Retrieved from http://devry.vitalsource.com/#/books/9781269588669/pages/94081221