Economic System Inquiry (Coursework Sample)

Economic System Inquiry First of all, there is no state that is entirely a capitalist, communist, or socialist. The majority of nations now use mixed economic models. The United States, for instance, combines elements of both capitalism and socialism, while China is a hybrid of the two systems. This is due to the fact that no one economic system can adequately address the diverse requirements of any given nation's economy. Consequently, nations often use a variety of economic systems to deal with a wide range of economic challenges. The three key economic questions are: a) What goods and services should be produced? b) How should these goods and services be produced? c) For whom and how should these goods and services be produced and distributed? In a communist economic and political system, the community as a whole owns and controls the means of production and distribution. It is based on the idea of a classless society, where everyone works and is paid according to their needs and abilities (Yang, 2012). Historically, the Soviet Union and China have been the most prominent examples of communist countries. Socialism is an economic system whereby both production and distribution means are owned and managed by the community as a whole. It is based on the idea that the resources of society should be used to benefit everyone, rather than just a few individuals (Yang, 2012). Countries such as Sweden, Norway, and Denmark have adopted a form of socialism. Capitalism (free markets) is an economic system whereby the means of production and distribution are owned and managed by the private sector or individuals . It is based on the idea of free competition and the pursuit of profit. Countries such as the United States, the United Kingdom, and Canada have adopted a form of capitalism. There is no country that is purely a communist, socialist, or capitalist country. This is because all countries have a mix of different economic systems, and the balance between them can vary from country to country. For example, some countries may have more of a socialist system than a capitalist one, while others may have more of a capitalist system than a socialist one. Answer the following using the 3 key economic questions Communism: i. What will be produced: Under communism, the government decides what goods and services will be produced and how much of each will be produced. ii. How will it be produced: The government also decides how the goods and services will be produced (Engels, 2020). This usually means that the government owns the means of production, such as factories, land, and other resources. iii. How will the output society produces be distributed: Under communism, the government decides how the output society produces will be distributed. This usually means that the goods and services are distributed equally among the people. Socialism: i. What will be produced: Under socialism, the government and the people decide what goods and services will be produced and how much of each will be produced. ii. How will it be produced: The government and the people decide how the goods and services will be produced (Crossman, 2021). This usually means that the government owns some of the means of production, such as factories, land, and other resources, while the people own the rest. iii. How will the output society produces be distributed: Under socialism, the government and the people decide how the output society produces will be distributed. This usually means that the goods and services are distributed according to need and ability to pay. Capitalism: i. What will be produced: Under capitalism, the people decide what goods and services will be produced and how much of each will be produced. ii. How will it be produced: The people decide how the goods and services will be produced. This usually means that the people own the means of production, such as factories, land, and other resources. iii. How will the output society produces be distributed: Under capitalism, the people decide how the output society produces will be distributed. This usually means that the goods and services are distributed according to the laws of supply and demand. source..