Explore BrainMass

Explore BrainMass

    Economic Systems

    An economic system is the organization of production, distribution, and consumption for goods and services. An economic system includes the different economic structures and components that make up a society. The different types of economic systems transfer information between each other and are related to one another. Economic systems share the concept of mode of production and are most often centered on capitalist mixed economies.

    Economic systems all share the problem of having to supply the unlimited wants of consumers with limited resources. Economic systems have to address the primary economic decisions of what to produce, how to produce it, and who to produce it for. The general function of an economic system is to stabilize the economy, guide economic progress, distribute goods, services, and resources, as well as manage production. The function of the government, ownership of profits and resources, and price determination are some of the components of economic systems.

    Economic systems differ in the way they allocate means of production and in their use of inputs. An important distinction between capitalist economic systems and socialist economic system is the objective of each system. In a socialist economic system, the objective of production is to produce goods and services in order to satisfy demand. In capitalist economic systems, the objective of production is profit maximization.

    The types of general economic systems include the barter economy, capitalism (free economy), gift economy, global economy, mixed economy, participatory economy, socialism (planned economy), and traditional economy. Each differ in their characteristics and how they address the primary economic decisions.



    1. The Role of Behavioral Economics and Behavioral Decision Making In Americans' Retirement Savings Decisions. Retrieved from www.ssa.gov/policy/docs/ssb/v70n4/v70n4p1.html

    © BrainMass Inc. brainmass.com September 19, 2021, 10:24 am ad1c9bdddf


    BrainMass Categories within Economic Systems

    Barter Economy

    Solutions: 8

    A barter economy is an economy that exchanges goods or services for other goods or services, without the use of currency.

    Capitalism (Free Economy)

    Solutions: 37

    A free market is an economic system where the means of production is privately owned and a capitalist economic system is a system that allows individuals to accumulate their own wealth.

    Gift Economy

    Solutions: 0

    A gift economy is an economy where exchanges occur through the form of gift giving, without contracts or agreements for immediate rewards.

    The Global Economy

    Solutions: 28

    The global economy is the economy that eists between countries across the world and is usually represented by a single currency

    Mixed Economy

    Solutions: 1

    A mixed economy is an economic system that functions with both state and private sectors, making it possess qualities of planned and market economies.


    Participatory Economy

    Solutions: 0

    Participatory economics (or parecon) is an economic system that incorporates the public when making economic and political decisions.

    Socialism (Planned Economy)

    Solutions: 3

    A socialist or planned economy is when a government regulates and controls all areas of production and investment within an economy.

    Traditional Economies

    Solutions: 1

    A traditional economic system is a system that functions through traditional agricultural practices such as hunting and fishing and follows customary policies.

    BrainMass Solutions Available for Instant Download

    Pricing and output decisions - Monopoly and Perfect competition

    Your consulting firm was just granted an exclusive contract for your state. You now must decide your pricing policy, given the following relationships: P = $1400 - 0.0004Q MR = $1400 - 0.0008Q AVC = $1000 where P is the price, Q the quantity, and AVC the average variable cost. The firm will encounter no fixed cost

    Transfer prices, relational contracts, and prediction markets

    Discussion 1 • In your workplace or home, are transfer prices, prediction markets, and relational contracts used? If so, explain how. If not, describe how you might implement these tools in your workplace or home. • The family is another sort of internal market. How could transfer prices, relational contracts, and predict

    Global Resources: Management and Competition

    Provide information regarding the resources, the environment, and consumption. 1. What is the relationship between resources and the economy. 2. If a country has resources, does that automatically mean that the country will be wealthy.

    Accounting: What Numbers Mean, 10th edition

    5.14 a. Calculate the approximate annual rate of return on investment of the following cash discount terms: 1. 1/ 15, n30. 2. 2/ 10, n60. 3. 1/ 10, n90. b. Which of these terms, if any, is not likely to be a significant incentive to the customer to pay promptly? Explain your answer. 5.16 Notes receivable— interest accrua

    The Current State of the Economy

    Provide an argument to describe the current state of the economy in terms of the following: -The economic goals -The definition of the phases of the business cycle -The key economic variables described in the text

    Communist Economic Systems

    Defenders of Communist economic systems may point out that consumers pay lower prices for certain goods because the government imposes a limit on what producers may charge. Cite at least two other ways that consumers may be "paying" for these goods.

    Computation of Nominal and Real GDP

    Please explain the answer to the following question. Thanks. Nominal GDP increased from roughly $10 trillion in 2000 to $14 trillion in 2009. In the same period the GDP price index rose from 90 to 110. By how much did real GDP increase?

    Opinion Polling Webpage

    2. Visit the Opinion Poll webpage ( http://en.wikipedia.org/wiki/Opinion_poll) and examine a variety of polls. 3. In the Forecasting discussion forum, discussion the following: a. What are your views regarding economic forecasting? In particular, share any experiences you may have had with business forecasts for company bu

    Debate the handgun laws.

    Some states in the United States allow citizens to openly or covertly carry handguns. Citizens can protect themselves in the case of robberies or harm by using these guns. Other states do not allow citizens to carry handguns. Criminals, however, tend to have handguns in all states. Use ECONOMIC ANALYSIS to predict the effects of

    Tax cut benefits

    Question: How can tax cuts help revive the economy? Explain. Your answers must include fiscal policy, expansionary fiscal policy, tax multiplier, Aggregate Demand, etc. You must use at least one article. Thank You


    Airphone, Inc. manufactures cellular telephones at a processing cost of $47 per unit. The company produces an average of 250 phones per week and has a yield of 87% good-quality phones, resulting in 13% defective phones, all of which can be reworked. The cost of reworking a defective telephone is $16 a. Compute the quality-pro

    Optimal Price for a Car Wash

    You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Texans for a car wash is -4, while the elasticity of demand by non Texas car wash is -6. If you charge Texans $20 for a car wash, how much should you charge a man with Oklahoma license plates for

    Marginal Analysis: explained

    Assignment 1 Using the information in the following table: a- Complete the last 2 columns by replacing the * with the correct values. b- Draw the following curves in one chart ? Short-run average product (AP) curve; ? Short-run marginal product (MP) curve. Table showing the Average and Marginal product of labour fo

    Gross Dometic Product

    If GDP is increasing by 3% per year how long will it take GDP to double? Given the same conditions how long will it take Per Capita GDP to double if the population grows at 2%?

    Design of work system

    An analyst has timed a metal cutting operation for 50 cycles. The average time per cycle was 10.40 minutes, and the standard deviation was 1.20 minutes for a worker with a performance rating of 125 percent. Assume an allowance of 16 percent of job time. Find the standard time for this operation.

    Expected Value, Risk Measurement and Relative Risk

    Hello, I am looking to compare the work and formulas for the calculation of Expected Value, Absolute Risk Measurement, and Relative Risk for both projects. I have the answers, however, my textbook is horrible in explaining the work. Project A Probability Cash Flow 0.5 $200,000 0.5

    Competitive Firm Incurs Economic Loss

    If a perfectly competitive firm incurs an economic loss, it should shut down immediately. try to raise its price. shut down in the long run. shut down if this loss exceeds fixed cost.

    Pricing Index

    You have a price weighted index made up of two stocks, A and B. The price of A equals $30 and the price of B equals $70. What is the current value of this index? Also, what will be the percentage change in the index resulting from a 10 % increase only in the price of A? A 10% increase only in the price of B?

    Economic Rent

    A major city just doubled the annual fee for hot dog push carts that had exclusive rights to a spot just south of a major museum of art to $288,000...why would anyone pay this much for a push cart license? Who is obtaining the economic rent for the lucrative push cart location? How much economic profit is the push cart owner mos

    Economic Profit Questions - Reviews

    HoneyBee Farms, a medium-size producer of honey, operates in a market that fits the competitive market definition relatively well. However, honey farmers are assisted by support prices above the price that would prevail in the absence of controls. The owner of HoneyBee Farms, as well as some other honey producers, complain tha

    ROTH IRA and retirement problem

    The Taxpayer Relief Act created Roth IRA which allows you to make after-tax retirement contributions of up to $2000 annually and contributions are not tax-deductible, but no taxes are paid on earnings. In contrast, contributions to IRAs are tax-deductible, but taxes will be paid on all future distributions. Consider an individ

    Consumer Price Index

    I am looking for 3 strengths and 3 weaknesses of the attached mock calculation of the CPI. What identifies these characteristics and if the CPI is imperfect, do we need to use it?

    Economic Incentives for North American Expansion

    Ecomonic incentives were at the heart of westward expansion across North America in the late 18th centuries, so let's apply some economic ananlysis to the situation. The year is 1804 and you estimate that Merriwether Lewis 'totl cost of trapping beaver in Oregon and taking the pelts to market in St. Louis is given by the funtio