Question

What are the requirements for a "good capitalist" system? It is widely believed by economists that the role of the economy is to allocate resources efficiently, and good or bad shouldn't be a factor in the allocation of resources . Do you agree or disagree?

Answer 1

The role of Good Capitalist system is a very prominent one in economic development of all the countries in the world. The major share of good capitalist system in the means of production and services helps to fulfill the basic needs of the people in the society. Based on the common needs, let us explain the requirements for a good capitalist system briefly.

The competition among all the firms producing goods and services will be the prominent reason for producing more goods and services accordingly in order to meet the increasing needs of the people. The profit motive of the firms is the centric point of firms abiity to develop its business to the large extent and causing more employment opportunities in the society. The degree of less intervention of government will help the firms to take decision on fixing the prices for the goods and services and helps all the firms to control the cost of production by choosing its own way of best production techniques. The above explained facts reveals the requirements for a good capitalist system.

I agree with the given fact of economists that the role of the economy by allocating the resources efficiently being good or bad factor in the economic development. The three questions acts as basic factors which influences the need of allocating the resources. Three questions:- 1) how to produce? 2) for whom to produce? and 3) what to produce?. Economists of the policy making committee should research on rate of level of production according to the need of the people in the society. Secondly economists should allocate the resources and execute the plan in order to produce the good output of goods and services without any wastage of resources. Every economists consider the available resources to balance the gap between needs of the people in one side and quantity of goods and services in another side.