Economic System

Capitalism, Socialism and Mixed Economy

What is Economic System

An economic system is a consolidated form of different economic institutions.

The institutional framework regulating the environment on economic basis.

Elements of economic systemPeople Resources Reward Regulation Institutions

Types of Economic System1.Capitalism

2.Socialism 3.Mixed

Economy

Capitalism

What is Capitalism?
Economic system under which all firms, factories and other means of production are the property of Private individual and firms.
A system of economic organisation featured by the private ownership

THIS IS THE OLDEST SYSTEM IN THE WORLD.

ECONOMIC

COUNTIRES LIKE BRITAIN, FRANCE, AMERICA AND GERMANY ETC. have such system.

THIS IS THE OLDEST SYSTEM IN THE WORLD.

ECONOMIC

COUNTIRES LIKE BRITAIN, FRANCE, AMERICA AND GERMANY ETC. have such system.

Capitalism was the predominant economic system till 1917. it is also named as free enterprise system.

ADVANTAGE OF CAPITALISMINCREASE

IN PRODUCTION HIGH STANDARD OF LIVING TECHNOLOGICAL PROGRESS FLEXIBILITY LIBERTY

DIS ADVANTAGE OF CAPITALISMREGIONAL

INEQUALITIES NO WELFARE OF THE SOCIETY UNEMPLOYMENT MONOPLIES

Socialism

IntroductionFirst time it is introduced USSR after the revolution of 1917. Under this system govt. holds the ownership of the sources of production as well as in all economic activities.

Features OF Socialism Govt. ownership Central Planning Social welfare lack of competition emphasize on equal economic as well as social growth reduction in class distinction

Merit OF Socialism Greater economic efficiency a planned economy rapid economic growth greater freedom research & development

Demerits OF Socialism unreal work Loss of efficiency Loses of freedom misallocation of resources

Mixed Economy

IntroductionIt is the mixture of capitalism and socialism. India follow the same system. Under this system govt. allocate the different-2 economic activities according to their importance.

Features of mixed economyDivision of public and private sector. Government control Protection of labor Reduction of economic inequalities Freedom of consumption Free for Choice of occupation

Merits of mixed economyEconomic stability Proper allocation of resources Rapid economic development Equal distribution of income and wealth Foundation of innovative levels

De Merits of mixed economyConflict between two sectors Maximization of Un real work Un disciplined work Sign of weakness