Economic system of a country
Identify and evaluate the economic system that Malaysia is adopting. Discuss the rationale of Malaysia’s economic system in terms of utility maximisation and pricing mechanism for distribution of goods and services.
An economic system is the combination of the various agencies, and entities that provide the economic structure that defines the social community. Malaysia has adopting mixed economic systems. Mixed economic system is an economy where there is more government intervention than in a free market economy. Many of the activities of production, distribution, and exchange are undertaken by central government, but where there is more economic freedom for the individual than in a command economy. Mixed economy is also an economic system in which both the state and private sector direct the economy, thus reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety of government-sponsored aspects. The Elements of a mixed economy is basically to include a variety of freedoms such as to possess means of production like farms, factories, stores, to participate in managerial decisions in cooperative and participatory economics, to travel (needed to transport all the items in commerce, to make deals in person, for workers and owners to go to where needed), to buy the items for personal use, for resale; buy whole enterprises to make the organization that creates wealth a form of wealth itself), to sell (same as buy), to hire (to create organizations that create wealth), to fire (to maintain organizations that create wealth), to organize (private enterprise for profit, labor unions, workers' and professional associations, non-profit groups, religions, etc.), to communicate (free speech, newspapers, books, advertisements, make deals, create business partners, create markets), to protest...
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