The term economic system has been defined by J. R. Hicks as 'an organisation of producers to satisfy the needs of consumers'. It is a mechanism for tackling the two problems of scarcity and choice. Due to scarcity of economic resources, every society has to find some means of allocating resources among alternative ends or uses. In the present-day world [...]
In this article we will discuss about features, merits and demerits of capitalism economic system. Features of Capitalism: The capitalistic economy or simply capitalism has the following features: (a) The Institution of Private Property: In a capitalistic economy, property and means of production belong to the private individuals. Their owners are free to use their resources in the way they [...]
In this article we will discuss about the merits and demerits of socialism. Socialism is a social and economic system in which the means of production are collectively owned and equality is given a high priority. There are various forms of socialism, but all share a belief in the necessity for collective intervention in economic affairs. Socialism as an economic [...]