Question

How is our economy functioning with our Hybrid system? Provide two examples in two paragraphs and supply links to articles as reference. In two more paragraphs with links to articles, please write about our circular flow model is working…or not …and why or why not!   

Answer 1

The United States economy was running in a deficit because of social problems, markets imbalance and many other reasons. To tackle this economic issue the states introduced a hybrid economy. It is a set of emerging economy which has a collaboration of multi actors that blend new outcomes to produce a better economy. Some examples of organisations are the automobile industry, the information technology industry, social impact industry etc. They are in existence because they provide a stand system which any market economy fails to provide. In the present world e-commerce is the best example of hybrid economy.

The element of public good is important in hybrid economy and this feature softens the brutality of capitalism. With globalisation many small businesses have flourished and many new entrepreneurs have arisen since the advent of hybrid economy. With these advances in the economy people are getting much more independence in their finances. The exploitation of workers is declining exponentially because there are so many options for the work force to chose from. Although the exchange system if market is hampered by hybrid economy and this is an issue that needs solution.

The circular flow model is an income flow wherein the money flows inside a fixed loop. This system is working efficiently because tge money is not lost in any kind of transaction