Economic System Analysis

The economic system is a combination of regulations put into practiced by the firm and consumers in a country. The classification of the system also can be identified by the use of economic resources to overcome the economic problems. However, how to solve the fundamental problems of the economy is depends on the economic system that have been practiced. Economic systems exist to provide goods that can satisfy the needs of the individual are not limited to the use of scarce resources. Economics system functions is to determine who among the decision maker will make effective decision for the economy. Other than that, is to coordinate the activities of individual units and help decide who among the choice- maker will actually make efficient,

The production of goods and services is based on supply and demand in the general market (market economy), rather than through central planning (planned economy). Capitalism is generally characterized by competition between producers. Other facets, such as the participation of government in production and regulation, vary across models of capitalism” The capitalist system is otherwise called the free market or laissez-faire. In this system, individual and firms are free to determine the allocation arrangement of economic resources. People and clients are allowed to utilize the cash to pick generation strategies to be utilized as a part of the creation of merchandise and administrations. Countries that implemented the capitalism system of economy is America, United Kingdom, and Hong Kong. There are four characteristic of capitalist economy system the ownership factor, the decision maker, selections, price determinant, competition and motives. Firstly, the ownership factor, in a capitalist economy, the assets are claimed by the private sectors and individual. The government does not intervene in the ownership of economic resources. Individuals and firm are allowed to

Hypothetically, it may allude to an economic system that joins one of three attributes: open and private responsibility for, business sector based portion with economy arranging, or free-market with state interventionism. By and by, "mixed economy" for the most part alludes to market economies with considerable state interventionism and/or sizable open area close by a predominant private sector. Real mixed economies float all the more intensely to one end of the range. Notable economics models and hypotheses that have been depicted as a "mixed economy" incorporate. Mixed economic system to function as a result of a combination of government action and market forces. It is this combination that makes decisions about the allocation of economic resources. This economic system exists due from the weakness of the capitalist economic system and the centrally planned economy system. Among the countries that adopt a mixed economic system including Malaysia, Singapore and Thailand. The first characteristic of mixed economy is ownership factor. Customers and producers are free to have creation elements in the economy. Additionally, the legislature can have the factors of creation, especially the vital variables of production such as land. Freedom in the ownership of responsibility for assets controlled by the legislature through enactment that has been set. Its primary purpose is to safeguard the welfare of the general population, to