the most effective technology.main economic advantage of the market system is the constant stimulation of production efficiency. Economy produces what consumers require, by applying the most effective technology. The market system operates and adjusts automatically as a result of individual, decentralized rather than centralized government decisions.
2. Types of economic systems in the countries of the world
. 1 Description of the administrative command system and its characteristics
command system (ACS) -one type of economy at the present stage of human civilization is classified by economists on certain important topics.types of economies in the world today can be summed up in three main types: 1. Free-market system, or free market economy.an example of an economy is the economy of England in the 19th century. In modern times this type of economy is the economy of a country no longer exists. However, the classic elements of such a system are manifested and acted in any modern industrialized country. The main principle of this type of economy is that of Laissez faire -freedom of choice, defined by the interaction of the forces of supply and demand in a competitive market.
. administrative-command system of the economy.essence of this system is the routine administration of the country's economy from the unified Center bureaucracy). An example of this type is the economy of totalitarian regimes, such as the former Soviet Union. Journalists, politicians and writers still called planned economy raquo ;, transition state socialism, socialist economies raquo ;, communist economies raquo ;, administrative economies. Raquo;
. the economy of the mixed type. Features of administrative-command system are public (and in reality State) ownership of virtually all economic resources, monopolization and bureaucratization of economy in specific forms of centralized economic planning as the basis of the economic mechanism.economic mechanism of administrative-command system has a number of features. It involves, first, the direct management of all enterprises from a single Center, the highest echelons of State power that undermines the autonomy of the actors. Secondly, the State is in full control of the production and distribution of products, which are free-market relationship between individual households. Thirdly, the State apparatus operates economic activities using mainly administrative and regulatory methods, which undermines the material interest in the outcome.economy system is a way of life in which capital and land are owned by the State, and the allocation of scarce resources is carried out on the instructions of the Central Government and in accordance with the plans.
When excessive centralization of executive power develops bureaucratization of the economic mechanism and economic ties. By its nature the bureaucratic centralism is unable to increase the efficiency of business operations. It is first of all that the total economy is unprecedented in scale monopolization of production and marketing. Giant monopoly established in all areas of national economy and supports ministries and departments, in the absence of competition does not care about the introduction of new products and technology. For economy by establishing the deficiency is characterized by the absence of normal human and material provisions for violations of the balance of the national economy.countries with administrative-command system to general economic objectives had its own specific features. In accordance with the then dominant ideological lines to determine the amount and structure of products was considered to be too serious and responsible to pass it by the direct producers of industrial enterprises, collective and State farms., The structure of social needs defined directly by central planners. However, since the detailing and anticipate the changing needs of society in a way fundamentally impossible, these bodies were primarily to meet the minimum requirementsmand system of the economy uses mainly two kinds of coordination: bureaucratic and aggressive; the tend to give rise to a deficit and unrestricted demand. Offices in such a system, trying to mimic the market. But the simulation market is different from the main feature: dependence of consumer agencies rather than the seller from the buyer, from the ratio of supply and demand, as it is manifested in a competitive market.countries with administrative-command system of the key economic challenges had its own specific features. In accordance with the then dominant ideological lines to determine the amount and structure of products was considered to be too serious and responsible to upload it directly to producers - industrial enterprises, collective and State farms. Therefore,...
