Economic System Models
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Economic Systems Models
Hello Mr. Sajid and my fellow students. Me and my friend here are going to tell you about the main types of economies. There are three main types of economic systems:
The Market Economic System
The Planned Economic System
The Mixed Economic System
MARKET ECONOMIC SYSTEMS
First of all we will discuss the Market Economic System. In these economies, everything is privatised, that is, owned by the public. There is no government intervention. The prices of goods and services are determined by the forces of Supply and Demand. The consumers play a very central role in this type of economy. They are a very big deciding factor over what is being produced in the market and how much it is being charged.
For example, a watch is in high demand and the producers are unable to meet the supply quotas because of shortage of capital, so the shopkeepers will raise the price of the watch...