Question

Economic systems:

1.         Identify the questions all economic systems must answer

                                                                                                   

                                                                                   

2.         Compare and contrast including strengths and weaknesses. Give an example of each.

            Go to www.cia.gov. , the World Fact Book:

Look up the North Korean, Swedish and the U.S. economy.

TYPE→ ANALYSIS↓		MARKET/ CAPITALISM	MIXED	COMMAND/ COMMUNISM
DESCRIPTION [Include ownership and decision making when appropriate.]		Private ownership. Supply and Demand decides.	Blend of private and government. Blend of supply & demand with government intervention.	Government ownership. Government decides.
STRENGTHS
WEAKNESSES
EXAMPLE

3.        According to Karl Marx, Communism is the ideal system and the highest [purest] form of Socialism; his positions on the following include:

a.        Private property: Land, capital owned by the state for the people.

Why do you think he felt this should occur?

What is a possible negative of this?

b.         About the distribution of production [income]: All persons should do what they can for the economy, but each will receive “according to his need.”

4   Summarize current issues in China.

            Use World Fact book from www.cia.gov as one source.

                        Brief economic history:

                        Describe economy:

            Economic changes in recent years:

            Economic challenges facing them:

Explain how at least two of the topics in this unit relate to your program or future employment.

Answer 1

There are four types of economy that prevail in the market. Captial economy, mixed economy, command economy and traditional economy. among all these traditional economy is somehow merged either with capital or command economy. the main objective of these economies to run the country with better facilities and a higher level of welfare.

now we are going to discuss those questions which all the economies need to address

1. What is the economic growth of the country?

2. How to minimize unemployment?

3. is the economy is stable?

4. how to minimize inequality.?

5. how to protect environmentally?

6. how to optimize social welfare?

7. how to optimize health care and education

TYPE→ ANALYSIS↓		MARKET/ CAPITALISM	MIXED	COMMAND/ COMMUNISM
DESCRIPTION [Include ownership and decision making when appropriate.]		Private ownership. Supply and Demand decides.	Blend of private and government. Blend of supply & demand with government intervention.	Government ownership. Government decides.
STRENGTHS		the capitalist economy is a profit-oriented economy where the market is owned by the private owner. here the economic growth is higher. more employment	A mixed economy is a blended economy of both market economies as well as a command economy. here the government a significant and mostly equal role. so there is a high chance of social welfare. low unemployment. high GDP.	Command economy, it is a restricted economy every decision is taken by the government role of the private owners is very less. the decision regarding things may be business or social welfare that can only be taken by the government. government is the rule maker and residents are rule-taker. so there is low chances of any disturbance in the economy without knowledge of government.
WEAKNESSES		In this economy, here is a very low chance of social welfare. low rate of wage. high unemployment. more people under the poverty line	no proper regulation come time conflict in terms of rules and regulation overburden of welfare regular check-up of economic determinants	overloaded with pressure no freedom of work, speech,or thought process. more bouned with restriction the vidual decision has no value
EXAMPLE		Sweden is a capitalist country whereas the s mixed economy and North Korea is the best example of a mmunist country.

3. Karl marks thought communism is the ideal and highest form of socialism. for him private property, land capital woned by the e for people, because if there is an accumulation of capital with few wealthy people then there is a high gape in society. if it belongs to the state then the there equally distribute it among all required people. the negative of woning private property will bound people not to do any progress or earn more profit as it is been taken and distributed.

b) where people can go for higher production in terms of income but they can get only a portion that fulfills their need which will decrease the intension of the producer to produce more and earn more profit.

4. china is a communist country. from 1970 it is a closed, centralized,and market-oriented economy.

in recent changes,china had taken some proactive decisions regarding the re of the economy. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

Challenges face by china

The Chinese Government faces various challenges including

(a) reducing its high domestic savings rate and correspondingly low domestic household consumption;

(b) managing its high corporate debt burden to maintain financial stability;

(c) controlling off-balance sheet local government debt used to finance infrastructure stimulus;

(d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness;

(e) dampening speculative investment in the real estate sector without sharply slowing the economy;

(f) reducing industrial overcapacity; and

(g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation.