economic system - a set of mechanisms and measures aimed at the organization and distribution of various resources of society for consumption goods.In other words, the concept can be described as making decisions about what to produce, how and for whom.
In this regard can be characterized three main problems of the economic system.The first stems from the fact that it is necessary to carry out the best mode of development, which will produce the required amount of goods and services in resource-limited settings.The second is determined by the efficiency of production.This means that you should find out by what technologies and what companies will be most advantageous to release the required products.A third problem involves decisions based on the principles of distribution of goods produced between different consumers.
The main features of the economic system can be regarded as a method of settlement of economic relations, as well as the nature of the property, which determines the means of production.In this regard, you can define several types of systems:
1. Traditional.
2. Command.
3. Market.
4. Mixed.
consider the classification presented in detail.
Traditional economic system - a structure based on subsistence farming and common property.The distribution of funds and resources, as well as their use is carried out in accordance with established customs and traditions.This system can be characterized by small-scale production, conservative, backward production technology.She is currently seen in underdeveloped countries.
command economic system - a kind of way to build the economic life of society.Here, the most important means of production are at the mercy of the state, while the allocation of resources takes place centrally through planning.
market economic system - is one in which there is free competition, provided freedom of choice, entrepreneurship and private Ownership resources.The regulatory process is almost without government interference.Thus, the recovery ratios and maintaining a balance occur naturally.
Mixed economic system - it is some combination of public and private sector.State regulation ensures the security of the social life of the citizens and the state itself is directly involved in the provision of various social benefits to society.
efficiency of economic systems can be determined by several parameters, such as supply and demand, and price competition.The interaction between the first three in the economy are called "market mechanism".This indicator measures the coordination of actions between consumers and producers.In turn, the competition helps to identify the degree of no-connection price of each participant of market relations.
