When hearing the word “economy” what comes to mind? Most likely, America or Capitalism right? Well, to face facts, there is certainly more than just America’s Capitalistic society! There are actually four different main economic systems in place today, along with a couple of sub-economic systems such as socialism and capitalism. The four economic systems in place today are; traditional, command, mixed/dual and market (Bovee). What does all of this mean? Firstly, a traditional economic system is exactly what it sounds like; traditional. This is the oldest economic system and produces products and services based on the society’s beliefs, customs, religions, and traditions. Areas that use this type of economic system are generally third worldly
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Organizations run by the people are able to determine how the economy is ran, how supply is generated, what goods and services are offered, etc. Although, that being said, NO truly free market exists. There will always be some sort of limitation on what actually occurs. A prime example of a successful market economy and its sub-economic category is the Capitalistic economy the United States of America employs. The United States falls under this Capitalist/ Market economy due to the government regulating fair trade, government programs, monopolies, etc. Whereas on the other hand, Socialism; another sub-economic category of a market economic system. Socialism is an economic system in which the government controls and owns the most profitable industries but allows the rest of the market to operate freely and instead of price being regulated by the citizens or even the government, it fluctuates based upon supply and demand …show more content…
This primarily refers to a combination of market and command economies. In most of these societies there is generally a free market in place which is mostly free of government related interaction and ownership, except for in key areas pertaining to government programs including; educational services, public transportation, and postal services (Gemma). Now that we know more about the different economic systems in place and what each actually entails, we can answer a couple of questions. First, which economic system is best suited for handling a crisis of epic proportions such as a hurricane, blizzard or fire? Second, describe and explain why a socialist system might be the best in responding to the needs of a people struck by an emergency situation like the earthquake that occurred in Haiti 2010. Lastly, use the laws of supply and demand to explain why the cost to heat our homes and businesses goes up in the winter
Organizations run by the people are able to determine how the economy is ran, how supply is generated, what goods and services are offered, etc. Although, that being said, NO truly free market exists. There will always be some sort of limitation on what actually occurs. A prime example of a successful market economy and its sub-economic category is the Capitalistic economy the United States of America employs. The United States falls under this Capitalist/ Market economy due to the government regulating fair trade, government programs, monopolies, etc. Whereas on the other hand, Socialism; another sub-economic category of a market economic system. Socialism is an economic system in which the government controls and owns the most profitable industries but allows the rest of the market to operate freely and instead of price being regulated by the citizens or even the government, it fluctuates based upon supply and demand …show more content…
This primarily refers to a combination of market and command economies. In most of these societies there is generally a free market in place which is mostly free of government related interaction and ownership, except for in key areas pertaining to government programs including; educational services, public transportation, and postal services (Gemma). Now that we know more about the different economic systems in place and what each actually entails, we can answer a couple of questions. First, which economic system is best suited for handling a crisis of epic proportions such as a hurricane, blizzard or fire? Second, describe and explain why a socialist system might be the best in responding to the needs of a people struck by an emergency situation like the earthquake that occurred in Haiti 2010. Lastly, use the laws of supply and demand to explain why the cost to heat our homes and businesses goes up in the winter