Types of economic system

There are mainly three types of economic system that are socialist, capitalist and mixed economy. Any of country of the world exist in any one of them and followed them.

1. PRESENTATION ON- TYPES OF ECONOMIC SYSTEM SUBMITTED TO :- DR. RAJNEESH KUMAR YADAV (ASSOCIATE PROF., DSW) SUBMITTED BY :- AVANISH KUMAR MSW IV th SEM.(REGULAR) DEPARTMENT OF SOCIAL WORK UNIVERSITY OF LUCKNOW

2. Introduction An economic system is a system of production and distribution of goods and services as well as allocation of resources in a society. Any economic system has to answer the three main Questions- What to produce? How to produce? For whom to produce?

3. Types of Economic System Traditional Economy Command Economy / Socialist Economy Market Economy / Capitalist Economy Mixed Economy

4. Socialist Economy Socialist means the system under which economic system is controlled and regulated by the government so as to ensure welfare and equal opportunity to the people in a society. The idea of socialism is first introduced by Karl Marx and Fredric Engles in their book, ‘The Communist Manifesto’. The word socialism means ‘all things to all men’. According to Samuelson, “Socialism refers to the government ownership of the means of production, planning by the government and income distribution”.

5. Main Features of Socialist Economy Collective Ownership Economic, Social and Political Equality Economic Planning No Competition Positive Role of Government Work and Wages According to Ability and Needs Maximum Social Welfare

6. Capitalist Economy Capitalism is the most prominent in our current global economic system. Its main characteristic is that it most means of production and property are privately owned by individuals and companies. The government has a limited role in such an economy So a capitalist economy is a liberal economy. USA, UK, Germany, Japan, Singapore all are classic examples of capitalist economies.

7. Main Features of Capitalist Economy Right to Private Property Price Mechanism Profit Motive Freedom of Enterprise Free market Minimum intervention by state Exploitation of resources

8. Mixed Economy M ixed economy is the golden combination of a command economy and a market economy. The means of production are held by both private companies and public or State ownership. And while market forces decide the price, demand, supply etc there is some government oversight to prevent monopolization and discrimination. The idea behind a Mixed Economy is to tackle the demerits of both a capitalist economy and a socialist economy and come up with a unique system.

9. Main Features of Mixed Economy Coexistence of All Sectors Cooperative Sector Freedom and Control Economic Planning Social Welfare Price Mechanism and Controlled Price Control of Monopoly Power

10. Conclusion An economic system is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area. All economic systems have three basic questions to ask: what to produce, how to produce and in what quantities and who receives the output of production. Today the dominant form of economic organization at the world level is based on market-oriented mixed economies. The concept of the Mixed economy has accepted by India.

11. Thank You...