The system of trade and industry by which the wealth of a country is made is called Economy. In its broadest sense. The economy is the organized system of human activity involved in the production, consumption, exchange, and distribution of goods and services. Here you will learn about Economy Example.
Economies determine how resources are distributed among members of a society; they determine the value of goods or services, and they even determine what sorts of things can be traded or bartered for those services and goods. The political and legal structure of a society will govern how wealth can be accumulated, how wealth and resources are distributed, and the manner of competition permitted between different participants in the economy.
Economy Example with Three Systems
The economy also refers to the way in which resources, especially those in shortage, are managed in a competent and appropriate manner.
Capitalism is an economic system in which capital goods are owned by private individuals or businesses. The production of goods and services is based on supply and demand in the general market, rather than through central planning. Capitalism is a market-based economic system where individuals own all resources. In pure capitalism, the only role of the government is to enforce the rules of the marketplace–preventing illegal activity. From destabilizing the economy–and to protect the property rights of individuals.
Socialist means the system under which economic system is controlled and regulated by the government. So as to ensure the welfare and equal opportunity to the people in a society. Socialism is a populist economic and political system based on the public ownership (also known as collective or common ownership) of the means of production. Those means include the machinery, tools, and factories used to produce goods that aim to directly satisfy human needs.
The Communism, also known as a command system, is an economic system where the government owns most of the factors of production and decides the allocation of resources and what products and services will be provided. Communism is an economic system where the collective owns all property. Most importantly, this includes the factors of production. The four factors of production are labor, entrepreneurship, capital goods, and natural resources.
Conclusion Of Economy Example
The economy also refers to the way in which resources, especially those in shortage, are managed in a competent and appropriate manner. Now you got the Economy Example with three systems. For example, the Industrial Revolution of the nineteenth century can probably be considered as the first time in history that goods and services were mass produced for wider consumption. Today the range of fields in the study examining the economy revolves around the social science of economics.