EMS- Economic Systems

Question 1

Number of

Answer 1

Public and private businesses in any economy will determine the economic system that dominates in a country.

Question 2

Criteria for deciding the type of system

Answer 2

Property right, who owns property.

Co-ordination of economy, who is in charge of the country’s markets

Question 3

Market system

Answer 3

Capitalism
Property is largely privately owned; no right to competition between businesses; freedom of choice with regards to what one wants to sell and who one wants to purchase; profit is the main aim; all business is owned privately or by corporations.
USA and Canada

Question 4

Mixed system

Answer 4

Socialism
State and private ownership of production, land and capital exists; some businesses are privately owned while some are owned by government; state is involved in providing essential services like health care and education; state allows the private sector to operate too but may interfere if it thinks it is necessary; profit is the main aim of privately owned businesses; some businesses are owned by individuals and others by state
South Africa and Zimbabwe

Question 5

Planned system

Answer 5

Communism
Production, land and capital belong to the state; no competition; freedom of choice is limited because the government makes all economic decisions for the so good called of the country; prices are determined by the sates; no profit motivation; all business is state owned.
North Korea, Cuba and China (was but now socialist)