Economic Systems Capitalism,Socialism,Mixed

8/3/2019 Economic Systems Capitalism,Socialism,Mixed

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Economic System

Capitalism, Socialism andMixed Economy


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What is Economic

System


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An economic system is a consolidated formof different economic institutions.The institutional framework regulating the environment on economic

basis.


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Elements of economic system-People

Resources

RewardRegulation

Institutions


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Types of Economic System-1.Capitalism

2.Socialism

3.Mixed Economy


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Capitalism


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What is Capitalism?

Economic system under which all firms,

factories and other means of production

are the property of Private individual and

firms.A system of economic organisation featured by the

private ownership


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THIS IS THE OLDEST ECONOMIC

SYSTEM IN THE WORLD.COUNTIRES LIKE BRITAIN, FRANCE, AMERICA ANDBRITAIN, FRANCE, AMERICA AND

GERMANYGERMANY ETC. have such system.


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THIS IS THE OLDEST ECONOMIC

SYSTEM IN THE WORLD.COUNTIRES LIKE BRITAIN, FRANCE, AMERICA ANDBRITAIN, FRANCE, AMERICA AND

GERMANYGERMANY ETC. have such system.


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Capitalism was the predominant economic

system till 1917. it is also named as freeenterprise system.


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ADVANTAGE OF CAPITALISM-ADVANTAGE OF CAPITALISM-INCREASE IN PRODUCTION

HIGH STANDARD OF LIVING

TECHNOLOGICAL PROGRESSFLEXIBILITY

LIBERTY


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DIS ADVANTAGE OFDIS ADVANTAGE OFCAPITALISM-CAPITALISM-REGIONAL INEQUALITIES

NO WELFARE OF THE SOCIETYUNEMPLOYMENT

MONOPLIES


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Socialism


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Introduction-Introduction-First time it is introduced USSR after theFirst time it is introduced USSR after the

revolution of 1917.revolution of 1917.

Under this system govt. holds the ownership ofUnder this system govt. holds the ownership ofthe sources of production as well as in allthe sources of production as well as in all

economic activities.economic activities.


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Features OF Socialism-Features OF Socialism- Govt. ownershipGovt. ownership

Central PlanningCentral Planning Social welfareSocial welfare

lack of competitionlack of competition

emphasize on equal economic asemphasize on equal economic as

well as social growthwell as social growth

reduction in class distinctionreduction in class distinction


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Merit OF Socialism-Merit OF Socialism- Greater economic efficiencyGreater economic efficiency

a planned economya planned economy rapid economic growthrapid economic growth

greater freedomgreater freedom

research & developmentresearch & development


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Demerits OF Socialism-Demerits OF Socialism- unreal workunreal work

Loss of efficiencyLoss of efficiency Loses of freedomLoses of freedom

misallocation of resourcesmisallocation of resources


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Mixed Economy


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Introduction-It is the mixture of capitalism and socialism.

India follow the same system.

Under this system govt. allocate the different-2economic activities according to their

importance.


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Features of mixed economy-Division of public and private sector.

Government control

Protection of labor

Reduction of economic inequalities

Freedom of consumptionFree for Choice of occupation


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Merits of mixed economy-Economic stability

Proper allocation of resources

Rapid economic development

Equal distribution of income and

wealthFoundation of innovative levels


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De Merits of mixed economy-Conflict between two sectors

Maximization of Un real work

Un disciplined work

Sign of weakness

Economic Systems Capitalism,Socialism,Mixed

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