ASSIGMENT  1 – ESSAY

Economic Systems –Allocation Of Resources Effectively (L.O 2.1)

The economic systems regulate the economy with regard to the distribution, production and consumption.  The economic systems require the controls through reforms, coordination and planning by the different business leaders.  The economic systems focus on the entities, agencies and institutions. The analysis of the economic systems focuses on the relations of the institutions and agencies within the economic systems.  The economic systems focus on the national income, money, inflation, expenditure and products from certain economies.  The performance of the different economic systems dictates the overall requirement for the analysis of operations for the organization.  This analysis will assess the effective application of the scarce resources allocation for the mixed, free enterprise and command economies. The research will assess the transitional economies, public and private sector initiatives and the private finance initiatives.  Economic systems offer the analysis of how states allocate scarce resources.

COMMAND ECONOMY

The command economy is the economic systems that are centrally controlled by the government in the making of decisions. This system is unable to control the efficient use of resources or provision of goods due to the knowledge problem. The knowledge problem occurs when the government is unable to know the amount of goods should be produced efficiently, (Edward, 2011).  The shortages and surpluses in this economic system are expressed in the numerous approaches of the organization. The economic system has no signals to the producers on what should be created or quantities of the products produced within the economy, (Zhou, 2011). This economic system is applicable in China and Cuba. The system has been applied by communist and dictatorship leaders.  The economic system offers the government the security or authority to dictate what goods can be offered and offer the issues that can be produced at the price that the goods will be offered for sale.

FREE ENTERPRISE ECONOMY

The free enterprise economy offers the economic systems the few restrictions that are placed on the business through ownership and activities.  The economic system effectively allocates the resources due to the realization of the competition. This competition allows the realization of activities for the organization.  The competition allocates the resources through the law of supply and demand. The government or control agencies have minimal control on the operations of the economy. The minimal restriction assures the accreditation of the economic system as free.  The economic system is aimed at having minimal restrictions on trade and the minimal control of the governmental interventions.   The individuals in the economic systems have the private property without the restrictions.  The enterprises are free to merge and operate in the economy without any restriction in the government. The enterprise of the economic systems assures the analysis of the profit maximization in the analysis of the different assessment of operations in the organization.

MIXED ECONOMY

The mixed economy is the economic systems that incorporate the governmental involvement into the market-based economy.  The states like USA and Japan have implemented this form of the mixed economy.    The government allows the involvement into the controls over the businesses for the private sector, (Zhou, 2011). The governments will seek for the redistribution of wealth taxing the private sector and uses funds from the taxes in promoting the social objectives. The economic system features the characteristics for socialism and capitalism approaches. The mixed economic system will assure the low levels of the private economic freedom with capital for the government to interfere into the economic systems for capitalism and socialism.  The modern economies assure the synthesis of the two economic systems.  The mixed economic systems do not block the private sector from the search of profit for the monitoring of the profit levels for the nationalizing of the companies that are deemed public.

TRANSITION ECONOMY

The transition economy hubs on changes from the central bank control to the free markets. The transition economies allow the undergoing of the economic liberalization for the market forces that set the prices through the central planning in the economy, (Edward, 2011).   The efficient allocation of the economic system allows the assessment of the transformation of the planned economy into the market economy. The economic system efficiently allocates resources in the economy assure the liberalizing of the economic activity for the market operations and prices that are along the reallocation of resources for the efficient application of the transition in the economy.  The macroeconomic stabilization looks the bringing of inflation under control through the lowering over time. The stabilization requires the discipline for the government budget and the growth of credit and money in the society.

PUBLIC SECTOR

The Public and private sector initiatives assure the efficient allocation of resources in the performance of different activities. The Public and private sector initiatives focus on the efficient allocation of resources through the removal of the political instability. The Public and private sector allow the growth of entrepreneurship. The entrepreneurs focus on the assessment of the different individuals of the organization, (Yang, 2009).  The Public and private sector allowed the lacking out of the political capacity for the safeguarding of the human rights of the population for the public services.  The analysis assured the provision of the public policies and economy through the shaping of the external forces.  The entrepreneurship allowed the innovative and adaptation for the market and managing of the risks.  The Public and private sector allow the provision of stakeholder’s engagement, innovation and sustainability support for the assessment of the projects in the organization.

PRIVATE SECTOR

The Private finance initiatives assures that the government funds the public infrastructure projects through the public to private partnerships and expertise for the private sector in designing, operating and financing activities in the society.  The Private finance initiative allows the optimization of the government projects and services. This enhances the viability of the private sector of the projects in the strategic and the promotion of the areas in the organization.  The Private finance initiatives efficiently allocate resources through the limiting of the risk transfers between the government and the private sectors in the organization, (Yang, 2009).  The Private finance initiatives assures the delivery of resources on a budget and on time, offers a specification for the definitions in the public sector, realization of the relationship that is between the private and public sector; improves the public delivery and services for the organization.

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