Extended Response Question: What is the Best Economic System?
Economic systems have formal and informal rules that help regulate a society. They also determine what to produce, how to produce and how to distribute goods and services. Each system’s priorities are to promote economic progress and maintain the economic stability. There are 4 types which consist of: Traditional, Market, Command and Mixed.
I believe the best option would be the Mixed-Market economic system. It not only has economic institutions but also a mix of private as well, which in turn exercises economic control. Production is owned by private and public firms along with the government to help monitor the economy. The same principle applies to resources since both have a share with the land/natural resources, capital and labor/entrepreneurship. One advantage of this system is the preeminent authority that consumer and producer holds because of their ability to choose what to consume/produce as long as it lies within the consent of the federal government. It is a positive factor since nothing dangerous or threatening services or goods will be on the market, providing a safe and healthy economic society. The social cost of business activities have the possibility of a reduction by completing a cost-benefit analysis by the government. There is a freedom of enterprise ownership, profit earning, social welfare and politics for people to take advantage of. Altogether, these private/public sectors work together in order to bring more production, a positive quality with the Mixed-Market system.
The Traditional economic system would not the most outstanding option to choose because it is based on past generations that uses those experiences as the foundation for their current economic decisions. Since production has been transferred by methods used their ancestors, it will be exactly the same as the original. They believe in the concept that “A product is created this way since it has...
Please join StudyMode to read the full document