What is an economic system

What is an economic system

The economists who are engaged in studying science about mutually beneficial cooperation in society cannot still answer a question what is an economic system. In general, it is understood how a package of measures directed to improvement of living conditions of society.

The term "economic system" still has no accurate definition. There are different approaches concerning definition of this concept. The first of them - technological. In this case the economic system represents group of the fields of activity contacting among themselves which divide labor duties among themselves. The main complexity is here search of an ideal order of division of production by which there have to be organizational and technical relations. Basic approach. The economic system is understood as a complex of the ways helping to seize certain benefits according to the existing property here. It is necessary to consider at the same time dependence of a similar complex on the dominating types of property. The following approach understands a system as a way of creation of any sort of the benefits (is more often than material) because of the existing cooperation between producers and the relations which are peculiar to them. An important factor consider a method of cooperation of producers with their subsidiary means which is capable to help to create the relations suitable for different commission of operations with the benefits. One more approach appeared in the western literature devoted to studying the matter. The term "economic system" is equivalent to the term "economic order" here. This concept as a complex of normative documents which defines norms of cooperation of the dominating economy components is deciphered (production institutions, small and large enterprises, etc.). Besides, allocate an integrated approach to definition of this term. In this case the economic system represents the group of components capable by means of own resources and rules of work to provide society with necessary goods and services. The main functions of a similar system consist in development of production of the benefits, coordination of components of economy, improvement of material security of the population, creation of additional jobs and creation of positive factors for development of society.

Author: «MirrorInfo» Dream Team


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