What Is Economic System - 4361 Words

Table of Content Table of Content 1 TASK 1 2 a) Explanation on economics system attempt to allocate resources effectively. 2 b) Assessment on the impact of fiscal and monetary policy on business organisation and their activities. 9 c) Explain Malaysian competition policy and other regulation that may impact company. 15 TASK 2 17 a) Explanation on how market structures determine pricing and output decision of business. 17 b) Illustration on the way in which market forces shape organisational responses. 20 c) Judgement on how business and cultural environments shape the behaviour of your organisation. 21 Conclusion 22 REFERENCES 23 TASK 1 a) Explanation on economics system attempt to allocate resources effectively. What is economic†¦show more content†¦(Economy Watch) Every economy has their own characteristic. For free market is there are many economic freedoms, there is competition among businesses, competition determines price which increase the quality of the product, economic decisions are made by the basic principles of supply and demand, and profit is the motive for increasing work rather than quotas. Mixed economy Mixed economy is combination from planned and free market economy. This economy system allows the private company use their capital. This economy system allows the government to interfere to the market. The resources are allocated from both the government and the private sector. In this system the freedom in the economic activities are influenced by the Government s regulation and licensing policies. The example of the country that implemented this economy system is Iceland, Sweden, France, and United Kingdom. There are several advantages and disadvantages of the mixed economy system. The advantages are most business and industry can be left to private firms. This is because private firms tend to be more efficient than government controlled firms because they have a profit incentive to cut costs and be innovative. Second is government can pursue policies to provide macro-economic stability. TheShow MoreRelatedWhat Are The Four Functions Of An Economic System1942 Words   |  8 PagesSimilarities and Differences PART ONE: Describe the four functions of an economic system. The four functions of an economic system is what to produce, how much to produce, how to produce, and to whom to distribute. What to produce is determined merely by the idea of consumer sovereignty, where in a market working economy, resources are distributed to satisfy most wants. This question is answered by government policy in a planned economic system. How much to produce is determined by consumer demand, where ifRead MoreThe essay is about the pros and cons of various economic systems and the governments influence within them. The title can be stated as: To what extent should the government regulate the economy ?1622 Words   |  7 Pagesworkers and any surplus would pay for programs and factories related to industrialization. He would put down a certain quota that the farmers needed to reach by a certain amount of time. However the farmers were not allowed to take grain away from what they were growing for the state until they met the quota. This led to a massive famine of 19 32-33 in the Ukraine in which millions died. At first the peasants resisted the idea of collective farms and so Stalin purged the land of any that opposed itRead MoreIntroduction A system is a network of parts which interlock to form an overall pattern. An economic1500 Words   |  6 PagesIntroduction A system is a network of parts which interlock to form an overall pattern. An economic system is a pattern of organisation which is aimed at solving the three central questions discussed in the previous sections. Economic systems do not always work well, but they are often so vast and complicated that it is quiet marvellous that they work at all. Mohr Fourie.(2008. P42). Scarcity is the fundamental challenge confronting all individuals and nations. We cannot always get what we want thatRead MoreEconomics And Immigration : The Economics Of U.s. Immigration Policy964 Words   |  4 PagesEconomics and Immigration Immigration is a topic on everyone s minds these days. With presidential candidates vying for votes in debates and political campaigns, immigration has been talked about quite a bit. But what is truly known about immigration? Since it is such a divisive issue, it is hard to know what is true and what isn’t. Unfortunately, the information most readily available to us comes in the form of opinionated articles and biased speeches by presidential candidates. Because the informationRead MoreWhat Is Economic Freedom?1509 Words   |  7 PagesWhat is economic freedom? In fact, what freedom really means, at its core? In words of Wayne Dyer, â€Å"Freedom means you are unobstructed in living your life as you choose. Anything less is a form of slavery† and according to Franklin Delano Roosevelt â€Å"True individual freedom cannot exist without economic security and independence†¦Ã¢â‚¬ . Combine the sayings of these two great men and we get the true essence of what it re ally means to have economic freedom. In more technical terms, for an individual to haveRead MoreEquilibrium Price and Quantity, Economic Systems; Cross-Price Elasticity of Demand (Cped); Iv) Income Elasticity of Demand (Ieod);1468 Words   |  6 PagesEconomics Assignment 1 i) Equilibrium price and quantity; The Equilibrium price is set when the supply and demand meet when the quantity demanded by the customer (market demand) and the quantity that the companies (suppliers) are willing to supply the goods/services. For example if you take a look at this graph you can see that at the cross section, where the lines of supply and demand meet, the equilibrium point is shown. This is the â€Å"market clearing price† where supply equals demand. EquilibriumRead MoreCommunism, Capitalism, and Socialism Essay652 Words   |  3 PagesThree different types of economic systems used by governments are Communism, Capitalism, and Socialism. Each type of system is unique in different ways. Each has distinct aspects that make it what it is. In communism, the government runs everything and there are no social classes. The government in capitalism doesn’t interfere with any businesses and lets the citizens own and operate them. Socialism is basically a mixture of the two economic systems. The government runs certain businesses,Read MoreCapitalism: A Superior Economic System Essay example1632 Words   |  7 PagesCapitalism: A Superior Economic System People generally enjoy having money in their possession because it gives them a feeling of power and freedom. Having money gives people the freedom to spend it on what they choose and the power to make more if they wish. Working in order to make money provides people with a sense of independence and pride while learning responsibility. In a world where the majority of people like possessing money and having the opportunity to obtain more of it, the majorityRead MoreMixed Economy vs. Command Economy659 Words   |  3 PagesAn economic system defines how the various entities in an economy interact. People have defined an economic system variously to include government policies, which is very important especially in modern times. Ancient systems were pretty simple. Trade was done using systems like barter trade which was very straight forward. People only exchanged what they had for what they needed, or wanted. However, in modern monetary economies, the setting is quite intricate. Hug e established companies have a lotRead MoreThe Four Main Economic Systems and Their Application in South Africa1426 Words   |  6 PagesIntroduction An economic system is a manner of approach which is used at solving the three main questions which are: What goods and services should be produced and the amount? How much of the scarce resource should be utilised and how will the goods and services will produced? For whom should the diverse goods and services be produced for and where will the production take place? Economic systems don’t always work accordingly but often so vast and complicated but on the contrast its working out just