Sub: Economics Topic: Econometrics
The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not forsubmitting the same in lieu of their academic submissions for grades.
-The incentives and pressures emerge from the "workings" of the system itself.Profit or loss are usually not within any one person or a group of persons. Individuals decide how toinvest their personal resources, what to produce and what to consume. In other words, Within a puremarket economy the government is entirely absent from economic affairs.
-An exchange is made without any explicit agreement for immediate or future rewards.
An economic system with limited socialist characteristics. The governmentcontrols the economy, regulates prices and wages. It may also determine what sort of workindividuals need to do. The state decides how to use and distribute resources.
-Goods and services are exchanged for other goods and services.
-It is a generic term for older traditional systems. These economic systems arenot very dynamic and everything in the economy follows a long established pattern. Standards of living are static and individuals don't enjoy much financial or occupational mobility. But economicbehaviors and relationships are predictable. Whatever you do in terms of trade, how to deal etc. isalways known and follows a static behavioral pattern.
It is an economic system that involves some government regulations in a marketbased economy. It combines elements of the market and command economy. Some major decisionsare made by individuals in the economy. The government plays a role in allocating and distributing themarket resources.
In participatory economics, there is a public participation in distributionand production of goods.Every country tries to design an economic system that is best for the country. An insight into how aneconomy works can help you make decisions that are best for the economy and hence assist inbecoming an economically-effective citizen.