ECONOMIC SYSTEMS

WHAT IS EONOMIC SYSTEM? TYPES OF ECONOMIC SYSTEMS

WHAT IS AN ECONOMIC SYSTEM?

IT IS A MECHANISM WHICH DEALS WITH THE PRODUCTION, DISTRIBUTION AND COMSUMPTION OF GOODS AND SERVICES IN A PARTICULAR SOCIETY AND COMPRISES OF PEOPLE, INSTITUTION AND THEIR RELATIONSHIPS

TYPES OF ECONOMIC SYSTEMS

MARKET ECONOMY
( FREE ECONOMY OR FREE ENTERPRISE)

PLANNED ECONOMY OR COMMAND ECONOMY MIXED ECONOMY

MIXED ECONOMY
OPEATES IN A FREE MARKET NOT PLANNED OR CONTROLLED BY A CENTRAL AUTHORITY OFTEN IDENTIFIED WITH CAPITALISM

CAPITALISM
BELIEVES THAT GOVT. INTERVENTIONS IN THE ECONOMY SHOULD BE RESTRICTED AND THAT A FREE MARKET, BASED ON SUPPLY AND DEMAND, WILL ULTIMATELY MAXIMIZE CONSUMER WELFARE

PLANNED ECONOMY
GOVT. CONTROLS ALL OR MOST OF THE FACTORS OF PRODUCTION AND MAKES ALL OR MOST OF THE PRODUCTION DECISIONS.

COMMUNISM
AN ECONOMIC SYSTEM IN WHICH THE MEANS OF PRODUCTION ARE OWNED AND OPERATED FOR THE PUBLIC BY THE GOVERNMENT.
GOVT. DETERMNES THE TYPE, QUANTITY, AND PRICE OF GOODS PRODUCES.

MIXED ECONOMY
(EQUAL IMPORTANCE TO BOTH PUBLIC AND PRIVATE SECTORS) ENTAILS DEMOCRATIC CONTROL OF THE ECONOMY

WHAT IS DEVELOPMENT?
MEASURES THE WELFARE OF INDIVIDUALS IN A COUNTRY

HUMAN DEVELOPMENT INDEX

DEVISED BY UNDP MEASURE OF ECONOMIC ACHIEVEMENTS OF A NATION IN COMBINING ECONOMIC GROWTH AND SOCIAL WELFARE

HUMAN DEVELOPMENT INDEX

FACTIRS TAKEN INTO ACCOUNT: a. LIFE EXPECTANCY AT BIRTH b. LEVEL OF EDUCATIONAL ATTAINMENT c. GROSS DOMESTIC PRODUCT PER CAPITA

INDIA RANKS
125 IN LIFE EXPECTANCY AT BIRTH,
114 IN ADULT LITERACY RATE, 122 IN COMBINED PRIMARY, SECONDARY AND TERTIARY GROSS ENROLMENT RATIO, 117 IN THE GDP PER CAPITA CHARTS