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Market Economics System:
General Overview and Ideologies
Introduction
Economic system is a system for producing, distributing and consuming goods and services. There are several economic systems practiced by different countries. One of these is market economic system. Market economic system is known as capitalism, laissez faire economy or free market economy. Market economic system is an economic system that the economic decisions and the price of goods and services are determined by the country’s demand and supply. Producers are compete with each other without any restriction that made by government. The major role of government in this economic system is tries to make sure the competitions are healthy in the market. The countries that are using this economic system are America, Canada, Australia, Switzerland, Argentina and South Africa.
Different country may have different economic system due to the variant on political base and development of the country. For example, Saudi Arabia is the country that practicing Islamic economic system mostly because of their religion, culture and socialism.
Contents
Analysis (Advantages and disadvantages)
My study is focus on the market economic system. First, let us talk about the government role of this economic system. Government roles in this economic system is to provide public goods such as road lamp, public toilet and etc. Government also tries to make sure there is some competitions among producers and to maintain the health of the competition.
Consumer roles in market economy is like the king due to all the outputs of the economy are depend on the consumer’s consumption. Besides, consumers also face scarcity when they got not enough money to buy goods and services. Therefore, they have to forgone something by make choice on buying goods and services, they will make choice on buying necessary goods or services instead of luxury goods. The things that consumers had forgone is opportunity cost.
Producer’s role
General Overview and Ideologies
Introduction
Economic system is a system for producing, distributing and consuming goods and services. There are several economic systems practiced by different countries. One of these is market economic system. Market economic system is known as capitalism, laissez faire economy or free market economy. Market economic system is an economic system that the economic decisions and the price of goods and services are determined by the country’s demand and supply. Producers are compete with each other without any restriction that made by government. The major role of government in this economic system is tries to make sure the competitions are healthy in the market. The countries that are using this economic system are America, Canada, Australia, Switzerland, Argentina and South Africa.
Different country may have different economic system due to the variant on political base and development of the country. For example, Saudi Arabia is the country that practicing Islamic economic system mostly because of their religion, culture and socialism.
Contents
Analysis (Advantages and disadvantages)
My study is focus on the market economic system. First, let us talk about the government role of this economic system. Government roles in this economic system is to provide public goods such as road lamp, public toilet and etc. Government also tries to make sure there is some competitions among producers and to maintain the health of the competition.
Consumer roles in market economy is like the king due to all the outputs of the economy are depend on the consumer’s consumption. Besides, consumers also face scarcity when they got not enough money to buy goods and services. Therefore, they have to forgone something by make choice on buying goods and services, they will make choice on buying necessary goods or services instead of luxury goods. The things that consumers had forgone is opportunity cost.
Producer’s role