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:- 1. Meaning of Economic System 2. Nature of Economic System 3. Functions. Meaning of Economic System: An economic system may be defined as the sum-total of institutions and patterns of behaviour that organise economic activity in a society. In other words, it refers to the institutional and legal framework within which the people [...]
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 [...]