PRESENTATIONON

ECONOMIC SYSTEM

NEED OF SURVIVALGoods and services

Primitive Times

BARTER SYSTEM(Goods for Goods)

How to Determine value of goods and

services?

Evolution of Money

With the change in era

Determination of value of Goods and Services

Economic System

CAPITALIST SOCIALISTIC MIXED

CAPITALISTICEconomic System

Free Economy

High Competition

PrivatizationProfit motive

Firms are the Price

maker

EvaluationMERITS

• Consumer is the king of market

• Good quality products• Optimum utilization of

resources• Automatic Mechanism• No government interference

DEMERITS

• Exploitation• Instability• Less heed to social

responsibility• Unequal distribution of

distribution• Impetus to illegal activities

Guided Economy

Pre-determined Goals

Lack of competition

Public sector ownership

Firms are the price taker

SOCIALISTICEconomic System

EvaluationMerits• Stable Economy• Equitable Income distribution

• Social welfare• No scope for illegal activities

• No exploitation

Demerits• Ignorance of consumers

• Excessive burden on government

• Relatively poor quality products

• Lack of initiative• Government interference

SOCIALISTIC

CAPITALISTIC

MIXED

MIXED Economic System

Partially controlled

Profit motive along with

social welfare

Efficient managemen

t of economy

Coordinated Economy

Healthy Competition

EVALUATIONMERITS• Healthy Competition• Good quality products• Importance to demand• Due importance to social

responsibility• Active participation of

both public and private sector

DEMERITS• Preference to particular

sector• Hinderence due to

mismanagement in government system

• Lengthy procedures• Possibility of monopoly• Clash of objectives

Conclusion-:

After the aforementioned study, we can conclude that in both CAPITALIST and SOCIALIST economies extreme situation exists i.e either full control of government or no control.Whereas in MIXED economy there is partial control of government which is the best option.

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ATTENTION