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Economic systems are connected with political ideology.

Economic systems vary in


different countries some have free market economies. Others have strict market
economies. There are three main types of economic systems: Market, command
and mixed.



Economic Systems
MARKET ECONOMY - advocates forces within a competitive
market, which constitute the "invisible hand", to determine how
resources should be allocated.

COMMAND ECONOMY - relies on the government to decide how
the country's resources would best be allocated.


COMMAND
ECONOMY
MARKET
ECONOMY
Basic and general economic systems are:

("hands off" systems, such as Laissez-faire
capitalism)
(a hybrid that blends some aspects of both market
and planned economies)
(an economy based on custom and tradition
or command. Economic decisions are based on the traditions of
community, family or religion.)
(where goods and services are directly exchanged
for other goods or services)
(a system where the production and
distribution of goods is guided by public participation)
(where an exchange is made without any explicit
agreement for immediate or future rewards) informal custom
governs gift exchange, rather than negotiated pricing
(Centrally Planned or Socialist) Economic Systems

All productive activities are privately owned. The public has the right to
enter any market and control the production of their goods and services.
MARKET ECONOMY
The goods and services that a country produces are not planned by anyone.
Production is determined by interaction of supply and demand. If supply is
greater than demand prices decrease but if demand is greater than supply
prices increase.
The role of the government is to encourage free and fair competition
between owners. Also to outlaw monopolies and restrictive business
practices. Such laws as the antitrust laws have been established.
"let [them] do", "let it be", or "leave it alone."
An economic environment in which
transactions between private parties are free
from tariffs, government subsidies, and
enforced monopolies, with only enough
government regulations sufficient to protect
property rights against theft and aggression.
aims to coordinate production in order to
directly satisfy human needs/economic demand
versus
generate profit and satisfy needs as a byproduct of
pursuing profit
to advance the productive forces of the economy while
being immune to the systemic inefficiencies (cyclical
processes) and crisis of overproduction that plagues
capitalism so that production would be subject to the
needs of society as opposed to being ordered around
capital accumulation.

The government plans the goods and
services that a country produces. Also the
government sets regulations on how much to
produce and determine the price to sell.
Objective of a command economy is for the
government to allocate resources for the
better of society. All businesses are state
owned.
Investments can be made only if they are in
the best interest of the economy as a whole.
None are made that are in best interest of
individuals. As the governments believe they
should get better as a whole.
Objective of a command economy is to
mobilize economic resources for public good.
Abolition of private ownership means there is
no incentive for individuals to look for better
ways to serve consumer needs.
The Command
Economy

A hypothetical stage of Socialist development
articulated by Karl Marx as "second stage
Socialism", whereby economic output is
distributed based on
need and not simply on the basis of labor
contribution.


All persons should have a say in decisions proportionate to
the degree to which they are affected by them.

SELF-MANAGEMENT

Replaces the mainstream economic conception of economic
freedom, which is criticized that by its very vagueness has
allowed it to be abused by capitalist ideologues.

Workers make decisions about what to do in the workplace,
where workers have say in proportion to how much they
are affected by a decision.


Open-source software projects
The Linux kernel and the GNU operating system are
prototypical examples for the gift economy's
prominence in the technology sector and its
active role in instating the use of permissive free
software and copyleft licenses, which allow free
reuse of software and knowledge.
Other examples include: file-sharing, the commons,
open access

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