Economic Systems: Traditional Economy and Mixed Economic Essay

Economic Systems: Traditional Economy and Mixed Economic Essay

Length: 1582 words (4.5 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Table of Contents
Traditional economy 3
Command economy 4
Market economy 5
Mixed economy 6
Conclusion 7

An economic system is where goods and services are produced, consumed, and distributed. It is also the way resources (also known as factors of production) are controlled in a nation. Economic systems aims at solving the three economic activities which are: “what should be produced? How should it be produced? For whom should it be produced?” economic systems do not always work well, but they are often so vast and complicated that it is quite marvellous that they work at all. There are four main economic systems namely, the traditional system, command system, and the mixed economy. These economic systems are generally recognized by economists, but they do not completely agree on the question of which system best addresses the challenge of scarcity.
The traditional system
It is shaped by tradition. The work done by people, the goods and services they provide, how they use and exchange resources, all tend to follow long-established patterns. In traditional economy, interest of the community takes precedence over the individual. Individuals may be expected to combine their efforts and share equally in the proceeds of their other traditional economies, some sort of private property is restricted by a strong set of obligations that individuals owe their community (Shmoop Editorial Team, 2008).
The same goods are produced and distributed in the same way by each successive generation. Each participant’s method and task of production are prescribed by the custom. Economic system is not a priority in traditional economy. Usually, economic activity is secondary to religious and cultural values (Mohr ...

... middle of paper ...

...O.P. 2007. Economic Concepts and Methods. New Delhi: V.K. Enterprises.
Harris, L. 1991. The Mixed economy of a democratic South Africa. Investment Analysts Journal: 32-41.
Shmoop Editorial Team. 2008. Types of Economic Systems. Date of access: 7 May 2014
Unknown. Advantages and disadvantages of economic systems. Date of access: 6 May 2014
Anderton, A. 2006. Economics. South Asia: Darling Kindersley.
Tucker, I. 2010. Survey of Economics. Mason: South-Western Cengage Learning.
Prybyla. 1969. Comparative Economic System. New York: Meredith Corporation.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Types Of Economic Systems, Traditional, Market, Command, And Mixed Essay

- There are four main types of economic systems; traditional, market, command, and mixed. Each of these systems is unique to itself but is also similar in some aspects to the others. Some of the ways in which these systems are different but yet the same are through their property rights, competition, and profits. Each system benefits differently through each of these factors. They all strive for the same purpose though, to survive. To bring their people happiness. To thrive and expand. Traditional economic systems are simply traditional....   [tags: Economic system, Planned economy, Mixed economy]

Term Papers
1269 words (3.6 pages)

Economic Systems Used by Countries Essay

- INTRODUCTION An economic system is the ways which a country allocates its resources. It is ways in which production is done, how to allocate resources that have been produced. An economic system is aimed at solving the four economic system which are command, market, traditional and mixed system. Countries this days usually use the mixed economic system and market system. Each of the system will be discussed and analysed. • Command economic system In this economic system all the resources are controlled and managed by the government and in that the government produce goods and services for everybody in a country....   [tags: command, market, traditional and mixed]

Term Papers
1419 words (4.1 pages)

The Four Main Economic Systems and Their Application in South Africa Essay

- ... • A traditional system also does not allow much room for innovation. It doesn't matter if you can build a home in half the time using concrete instead of mud and hay... that's just not the way it's done. Command Economic System “Communism is a political system rather than an economic system. Communist countries function under a single, dominant communist party” Phillip, M. & Louis, F. In such a system, determining the amount of total product used for investment rather than consumption becomes a centrally made political decision....   [tags: traditional, command, market, mixed]

Term Papers
1439 words (4.1 pages)

The Economic Systems Of Economies Essay

- In a world full of different economies, there are four economic systems that all economies can be placed into: traditional economies, market economies, centrally-planned or command economies, and mixed economies. Each of these types of economies have their own unique features as well as different roles that play their own parts. Property rights, competition, and profit are three of some of the main roles that differ in each economic system but also can parallel between the four types of economies....   [tags: Economic system, Planned economy, Mixed economy]

Term Papers
1288 words (3.7 pages)

Four Different Economic Systems and Which One I Think Best Suits South Africa's Mixed Economy

- ... It is thus a productive and industrialized economy that contains plenty of characteristics associated with developing countries, which include a division of labor between formal and informal sectors, together with an uneven distribution of wealth and income. However, producers and consumers have sovereignty to decide what to produce and as to what to consume but the government can intervene to prevent the production as well as consumption of harmful goods and services.The country is a multiparty democracy in which constitutional power is shared among the president and parliament....   [tags: critical analysis]

Term Papers
1438 words (4.1 pages)

Traditional Joint Family Norms Within China Essay

- Family has a supreme position in the care diamond in China, no matter in the provision or finance dimensions. Firstly, from the service provision perspective, the older care services in China involves all the children (both daughters and sons, but placing more responsibility on sons) in the family, which is continuous with traditional joint family norms (Ochiai, 2009). Concerning with the living modes of older people, older people in urban China are more likely to live in nuclear households instead of extended families after the mid-1990s (Whyte, 2005)....   [tags: Family, Extended family, Geriatrics]

Term Papers
1011 words (2.9 pages)

Different Forms Of Government And Civilization Essay

- All throughout history there have been many varying forms of government and civilization. Several have come and past and they all seem to leave the same impression on the world. That impression is all governments will test the limits of their power. Whether these civilizations are democracies, monarchies, fascists, communists, or theocracies, they always grasp for more. Each governing style is unique in their own way and has their own respective upsides and downsides. But this paper is not to compare different types of government, it is here to argue that they are all the same faces to a multi sided coin, if that were possible....   [tags: Economic system, Planned economy]

Term Papers
1441 words (4.1 pages)

Essay on Main Types Of Economic Systems

- An economic system is the institutions, organisations and methods used to deal with the problems of what kind of goods and services to produce, how and who should receive them that can affect a business, an area even the whole country. It can reflect the values, targets and development degree of a particular area. So, different economic systems are based on different situation of the businesses, areas or countries. However, there are three main kinds of economic systems: planned, market and mixed economy....   [tags: Mixed economy, Planned economy, Economic system]

Term Papers
1097 words (3.1 pages)

Essay about Business in India

- There are a few things that should be known about India before business is conducted there. The social and cultural standards are one thing that’s different. There are also differences in the political and legal systems, economical systems, and managerial systems. Some of the differences are obvious, while others are qualities that a representative or individual should be aware of before conducting business in the area. Social-Cultural In India, the polite culture makes it nearly impossible for individuals to say ‘no’....   [tags: Society, Culture, Politics, Economy]

Term Papers
881 words (2.5 pages)

Essay on The Gilded Age

- The Gilded Age A successful economy is perhaps the most key ingredient leading to a successful nation. An economy is a delicate balance of many different conflicting and coexisting elements. Naturally, an economy’s success can often be measured by the amount of wealth it contains, not to mention the effectiveness or ineffectiveness of its distribution of the wealth. Effective distribution of wealth is no easy feat. Wealthy and poor people will always need to coexist- this is an inescapable truth....   [tags: Economy Economics Society Essays]

Term Papers
4010 words (11.5 pages)