How Economic Systems Allocate Resources Effectively
Hong Kong’s Economic and Sustainable Growth Policies
August 25, 2022India’s Economic, Social and Political Development
August 25, 2022How Economic Systems Allocate Resources Effectively
Executive Summary
Learning outcome two comprises of three questions. The first question speaks about economic systems; it will be explained in the research how these economic systems attempt to allocate resources effectively. According to Samuelson (n.d.) these three economic systems are: Mixed economy, command and free market. ‘Mixed economies may have a distinct private sector, where resources are allocated primarily by market forces, such as the grocery sector of the UK economy. Command economy: ‘Markets enable mutually beneficial exchange between producers and consumers, and systems that rely on markets to solve the economic problem are called market economies. This method is referred to as central planning and economies that exclusively use central planning are called command economies. In other words governments direct or command resources to be used in particular ways’. These will be thoroughly explained in the research. The second question speaks about fiscal and monetary policies, fiscal policy is basically a tool used determine rules with respect to the expenditure of a government. Monetary policy influences the extent of money supply in an economy. Ghuman (2005). The last question speaks to competition policy and other regulatory mechanisms in an organization.
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Background/ Rationale
The aim of the research is to provide the researcher with an understanding of different organizations, the influence of stakeholders and the relationship between business and the local, national and global environment. On successful completion of learning outcome two, the researcher will understand the nature of the national environment in which business operate. The researcher will understand how economic systems attempt to allocate resources effectively, the researcher will also understand the impact of fiscal and monetary policy has on business organizations and their activities and also the impact of competition policy and other regulatory mechanism and the activities of an organization.
Profile 1
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