Advantages Of Various Types Of Economic Systems Assignment

Advantages Of miscellaneous Types Of Economic Systems - Assignment ExampleThe economic system decides the amount and the mechanism of the resource allocation. The factors of production, the organizations, and the mart forces be the economic system that interacts with each other with an aim to resolve the economic problems (Anderton, 2009, p. 30). This economic system is of various(a) types depending on the impact of market forces on the system. A free rescue is one in which the market forces are solely responsible for the determination of the set and quantity and the resources are allocated automatically without any miscellany of governing body intervention. On the other hand, in the case of the mixed economy, the market mechanism is allowed to operate solely to a limited extent. In a mixed economy, there is the coexistence of the public and private enterprises in the economy. It has been argued by many scholars that the free market economy operates on a higher level of effic iency compared to the mixed economies. Analysis of the Statement In order to understand the level of efficiency of these two types of the economy it is infixed to analyze the characteristics of these economies. A free market economy is characterized by the private ownership of the means of production. The governments role is limited to the regulatory and legal aspects of ensuring the rights of the people. The people who are existent in the economy have the right to operate in the market and buy and sell goods and services at the price and quantities that are determined by the market mechanism. The government may have regulation in casting of quotas or tariffs that does not hamper the free market environment in such economies (Samuelson and ? Nordhaus, 2010, p. 31). The market expression that is existent in such economies is based on the competitive framework. The decision making of the allocation of resources id deconcentrate because of each individual and decide how much to buy or sell in the market depending on the efficiency level.