Unit 4 Economic Systems P3

The main participants in a business include:

1. Owners- the people who polish the business the idea and bring it together through resources.

2. Employees- these are the people who work for the company

3. Customers- the people who buys goods or services from a store or business.

4. Suppliers- a person, company or organization that sells or supplies something such as goods or equipment to customers.

5. Competitors- these are the people who or companies who are trying to sell similar goods or services to the same people.

6. The media- they are the means of communication as newspapers, radio and TV that provide the public with news, entertainment usually along with advertising.

The activities of a business include:

1. Production- is the process

Economics is the science of analyzing the production, distribution and consumption of goods and services.

An economics system refers to the way in which the resources of a country are used to produce goods and services and the manner in which these goods and services are distributed for consumption. There are four types of economics systems:

1. Mixed economy- this is also known as a dual economy it primarily refers to a mixture of a market and command economy. This is an economic system that incorporates a mixture of private and government ownership or control or a mixture of capitalism and socialism.

2. Market economy- this is also known as a laissez faire economy where the prices of both goods and services are determined by supply and demand in a free price system.

3. Command system- this is also known as a planned economy, the government controls the economy. The state decided how to use and distribute resources. The government regulates prices and wages it may even determine what sorts of works

Creates large scale employment opportunities- entrepreneurs provide immediate large scale employment to the unemployed which is a chronic problem of underdeveloped nations.

II. Improvement in the standard living- entrepreneurs play a key role in increasing the standard of living of the people by adopting latest innovations in the production of wide variety of goods and services in large scale that too at a lower cost.

III. Promotes country’s export trade- entrepreneurs help in promoting a country’s export trade which is an important ingredient of economic development by producing goods and services in large scale for the purpose earning huge amount of foreign exchange from export in order to combat the import dues requirement

IV. Promotes balanced regional development- entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas through the growth of industries and business like road transport, health, education,