ECONOMIC SYSTEM

Topics: Economics, Supply and demand, Gross domestic product Pages: 6 (2420 words) Published: March 17, 2015
ECONOMIC SYSTEM

economic system 
Is a system of production and distribution of goods and services as well as allocation of resources in a society It includes the combination of the various institutions, agencies, entities (or even sectors as described by some authors) and consumers that comprise the economic structure of a given community. A related concept is the mode of production.

6 types of economics system
1. Proper determination system.
2.Proper system interaction
3. Proper distribution system.
4. Proper system of awarding.
5. Having organizational system.
6. Proper application system solutions.
MARKET ECONOMY

Is an economy in which decisions regarding investment, production and distribution are based on supply and demand, and prices of goods and services are determined in a free price system? The major defining characteristic of a market economy is that decisions on investment and the allocation of producer goods are mainly made through markets. This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production. MARKET SYSTEM

Market system
Is any systematic process enabling many market players to bid and ask: helping bidders and sellers interact and make deals. It is not just the price mechanism but the entire system of regulation, qualification, credentials, reputations and clearing that surrounds that mechanism and makes it operate in a social context

Two types of people that you can see in market
Seller - A party that makes offers or contracts to make a sale to an actual or potential buyer. Also called vendor. Consumer - is a person or group of people, such as a household, who are the final users of products or services. The consumer's use is final in the sense that the product is usually not improved by the use. MARKET STRUCTURE

Market structure
is the number of firms producing identical products which are homogeneous. 5 types of market structure
1. Monopolistic is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. 2. Oligopoly - is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers 3. Monophony - In music, monophony is the simplest of textures, consisting of melody without accompanying harmony. This may be realized as just one note at a time, or with the same note duplicated at the octave (such as often when men and women sing together). If an entire melody is played by two or more instruments or sung by a choir with a fixed interval between the voices or in unison, it is also said to be in monophony. Music in which all the notes sung are in unison is called monophonic. 4. Oligopsony - An oligopsony is a market form in which the number of buyers is small while the number of sellers in theory could be large. This typically happens in a market for inputs where numerous suppliers are competing to sell their product to a small number of (often large and powerful) buyers. It contrasts with an oligopoly, where there are many buyers but few sellers. An oligopsony is a form of imperfect competition. 5.monopoly - A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. The verb "monopolise" refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant...
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