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Forum | Becomingcelia » Education » Economics » How are economic systems determined? (How are economic systems determined?)
How are economic systems determined?
liangcx126Date: Wednesday, 09.11.2019, 5:25 PM | Message # 1
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In what ways do the goals and values of a society influence their choice of economic system and level of government intervention?
 
liangcx126Date: Thursday, 09.12.2019, 4:47 AM | Message # 2
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Goals and values of society have a strong influence over their choice of economic system and level of government intervention. A free economy, planned economy, and mixed economy all have their advantages and disadvantages. A free economy is central to increasing productive capacity. It is essential for economic growths in most cases. For example, Hong Kong is the freest market economy in the world, and it relies on and gains lots of profit from international trade.Planned economy also a lot of advantages when a society is focusing on a public good, for example, education. Founding a school is not very profitable, yet it is crucial. In a free economic system, there will be lots of people willing to get educated, resulting in education to have a higher cost. This could cause some poorer people to not get sufficient education, which is not a good thing. However, if there is government's interference, education could be compulsory if the government thinks so, and in this way, everyone can get educated, which is beneficial to society. It is also the same for other public goods, like healthcare and vaccinations.There won't be a purely "free" or "planned" economy in any country. In most cases, when a society wants more economic growth and wants the economy to be self-sufficient, the economy will be "freer", closer to a "Free Economy". When the society thinks that a product is non-profitable but is important, the economy will tend to be closer to a "planned economy".
 
Forum | Becomingcelia » Education » Economics » How are economic systems determined? (How are economic systems determined?)
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