Essay on Economics System : A Economic System

1354 Words Oct 9th, 2015 6 Pages
Economics System Essay
By: Noah Suarez Economics is a way for people to decide how to make the best use of scarce resources. A lot of societies have citizens that have needs and wants but there are not always going to be unlimited resources to satisfy them. The goals of societies are to have efficiency, stability, growth, security, equity, and individual freedoms. Many societies today find that a mixed economy is the best strategy to fulfill the goals of society. Although, people may say that command economies and pure market economies are better economic systems to address economic needs, they carry weaknesses which a mixed market economy can fix. The best economic system is a mixed market economy. A command economy is when the government makes all economic decisions. Therefore, everyone receives equal amount of resources and there are no private owned businesses. A problem with a command economy is that there is no competition in businesses so there would not be any incentive to make a better product and also they keep prices high. If AT&T was the only cell phone provider company then they could charge people however much they would like because there are no other companies to compete with prices. Thus, they will make an efficient profit and so they would be no point in using money to improve quality as there is no other competition to compete with quality. In a command economy the government assigns everyone jobs and everyone gets equal pay. If two people in a…

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