Advantages and disadvantages of the different economic types

Advantages and disadvantages of the different economic types What is economics? Economics is the study of the forces of supply and the demands allocate deficient resources. Economics is divided into microeconomics and macroeconomics. Microeconomics is something doing with the behavior of firms, consumers, and also about the role played by the government. Macroeconomics is more to inflation, industrial production, unemployment and the role played by the government. Microeconomics is the study about the behavior of small economics unit, for an example, individual consumers or households. Microeconomics is behavior of individual units. Microeconomics main concern is about the factors that affects an individual economics choice. Other than that, economics also can be said as branch of social science that can read the production distribution and the consumption of goods and service. Economics also include scarcity, choice, households, goods and productions as a definition. Economics system are studies of the method and institution where societies determine about the ownership, direction and allocation of economics. There are three types of economics system; Socialist system is a system that can be defined as a centrally planned or can be said as command economics. This system is fully controlled by the government. All the choice about resources are all made by the government. Capitalist system means free market economics. This system is like a freedom economy. This is because of the decisions made by the people. This system is mainly about the people in the country. Mixed economy Mixed economy is an economy based on the free enterprise principle. There is still some form of direct intervention and it is controlled by the government. Mixed economy can be said as a form of organization where both capitalist economy and socialist economy are found. In mixed economy there is the presence of private economic freedom with centralized planning and the common goal of avoiding the problems which comes because of capitalism and social ism. In the mixed economy system the main authorization of the economic activities are mainly by the governmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s regulation and the licensing policies. For an example, if someone wants to open a business, they must register and take license from the government for that particular business. So in this way, the government becomes a big power in the country. Mixed economy is also known as dual economy. In a mixed economy, the government runs things as post office, libraries, hospital and many more. Even when there is an industry which is not run by the business, still government get taxes and regulation like wage controls. Most of the people all over our country have no problem with the government take control of things like highway construction, birth certificate, national service economy may seem to be very easy as it is but there are some disadvantages in mixed economy also. The biggest disadvantage is between the public and private sector because they easily get b lurred or sometimes shift one way or another from time to time mixed economy usually increase more government control and less individual freedom. This is why mixed economy is always in an evolutionary process.