Economic Roles and Historical Types We have built an economy based on capital structure, interpersonal exchange, and money, and we have explored states of rest, which are fixed points of attraction for human activity. We are now ready

In the last 150-200 years different types of economic systems operated in the world: two market(market economy of free competition (net capitalism) and modern market economy (modern capitalism)) and two non-market systems(traditional and administrative-command).

Market economy— it an economic system based on the principles of free enterprise, a variety of forms of ownership of the means of production, market pricing, contractual relations between business entities, limited state intervention in economic activities. It is inherent in socio-economic systems where there are commodity-money relations.

Originating many centuries ago, the market economy has reached a high level of development, has become civilized and socially limited. The main features of a market economy are presented in table 2.1.

Table 2. Characteristics of a market economy

Free competition market economy developed in the 18th century, but a significant part of its elements entered the modern market economy. The main features of a free competition market economy:

1) private ownership of economic resources;

2) a market mechanism for regulating an economy based on free competition ;

3) a large number of independently acting sellers and buyers of each product.

Modern market economy (modern capitalism) turned out to be the most flexible, she is able to rebuild, adapt to changing internal and external conditions.

Its main features:

1) a variety of forms of ownership;

2) development of scientific and technological progress;

3) active influence of the state on the development of the national economy.

Traditional economics— it economic system, into which scientific and technological progress penetrates with great difficulties, since conflicts with traditions. It is based on backward technology, widespread manual labor, and a diversified economy. All economic problems are solved in accordance with customs and traditions.

The main features of the traditional economy:

1) private ownership of the means of production and the personal labor of their owners;

2) an extremely primitive technology associated with the primary processing of natural resources;

3) community farming, natural exchange;

4) the predominance of manual labor.

Administrative-command economy (centralized-planned economy) is an economic system in which the main economic decisions are made
the state, taking on the functions of the organizer of the economic activity of society. All economic and natural resources are owned by the state. The administrative-command economy is characterized by centralized directive planning, enterprise
tia act in accordance with the planned assignments brought by him from the "center" of management.

The main features of the administrative-command economy:

1) the basis is state property;

2) absolutization of state ownership of economic and natural resources;

3) rigid centralization in the distribution of economic resources and results of economic activity;

4) significant restrictions or prohibitions on private business.

The positive aspects of the administrative-command economy.

1. By concentrating resources it can ensure the achievement of the most advanced positions in science and technology (achievements of the USSR in the field of cosmonautics, nuclear weapons etc.).

2. Administrative-command economy able to provide economic and social stability. Every person is guaranteed a job, a stable and constantly increasing salary, free education and medical services, people's confidence in the future, etc.

3. Administrative-command economy proved its vitality in critical periods of human history (war, liquidation of devastation, etc.).

Negative sides of the command economy.

1. Excludes private ownership of economic resources.

2. Leaves a very narrow framework for free economic initiative, excludes free enterprise.

3. The state fully controls the production and distribution of products, as a result of which free market relationships between individual enterprises are excluded.

Mixed economy organically combines in itself the advantages of the market, administrative-command and even traditional economy and thus, to a certain extent, eliminates the shortcomings of each of them or mitigates their negative consequences.

Mixed economy - the type of modern socio-economic system that is emerging in the developed countries of the West and some developing countries at the stage of transition to postindustrial society... The mixed economy is multi-structured; it is based on private property interacting with state property (20-25%).

Based on a variety of shapes property, various types of economy and entrepreneurship function (large, medium, small and individual entrepreneurship; state and municipal enterprises (organizations, institutions)).

A mixed economy is market system with its inherent social orientation of the economy and society and the whole. The interests of the individual with her multifaceted needs are put forward at the center of the country's socio-economic development.

The mixed economy has its own characteristics in different countries and at different stages of development. Thus, the mixed economy in the United States is characterized by the fact that government regulation is represented here to a much lesser extent than in other countries, because the size of state property is small.

The main position in the US economy is private capital, the development of which is stimulated and regulated by state structures, legal norms, and the tax system. Therefore, mixed enterprises are less common here than in Europe. Nevertheless, a certain form of public-private entrepreneurship has developed in the United States through a system of government laws.

Russia is practically the first in the world applied the experience of the administrative command economy in the form of a state socialism... At the present stage, Russia begins to use the basic elements of a mixed economy.

2.2. Models of economic systems:

American, Swedish, Japanese. Russian model of an economy in transition.

For every economic system their own national models of economic organization are characteristic. Let's consider some of the most famous national models of economic systems.

American model is based on a system of encouraging entrepreneurial activity, development of education and culture, enrichment of the most active part of the population. The low-income strata of the population are provided with various benefits and allowances to maintain a minimum standard of living. This model is based on a high level of labor productivity and a mass orientation towards achieving personal success. The problem of social equality is not at all here.

The Swedish model is different a strong social orientation focused on reducing property inequality through the redistribution of national income in favor of the poorest strata of the population. This model means that the function of production falls on private enterprises operating on a competitive market basis, and the function of ensuring a high standard of living (including employment, education, social insurance) and many infrastructure elements (transport, R&D) - on state.

The main thing for the Swedish model is social orientation due to high taxation (more than 50% of GNP). The advantage of the Swedish model is the combination of relatively high rates of economic growth with a high level of full employment, ensuring the well-being of the population. The country has minimized unemployment, small differences in incomes of the population, and a high level of social security for citizens.

The Japanese model is characterized by some lag in the standard of living of the population (including the level of wages) from the growth of labor productivity. Due to this, they achieve a decrease in the cost of production and a sharp increase in its competitiveness in the world market. Such a model is possible only with an exceptionally high development of national identity, the priority of the interests of society to the detriment of the interests of a particular person, the willingness of the population to make certain sacrifices for the sake of the country's prosperity. Another feature of the Japanese development model is associated with the active role of the state in the modernization of the economy.

The Japanese economic model is different advanced planning and coordination of government and private sector activities. The economic planning of the state is of a recommendatory nature. The plans are state programs that orient and mobilize individual links of the economy to fulfill national tasks. The Japanese model is characterized by the preservation of its traditions and at the same time actively borrowing from other countries everything that is needed for the development of the country.

Russian model of an economy in transition. After the long-term domination of the administrative-command system in the Russian economy in the late 1980s and early 1990s. the transition to market relations began. The main task of the Russian model of a transitional economy is the formation of an efficient market economy with a social orientation.

The conditions for the transition to a market economy were unfavorable for Russia. Among them:

1) a high degree of nationalization of the economy;

2) the almost complete absence of a legal private sector with an increase in shadow economy;

3) the long existence of a non-market economy, which weakened the economic initiative of the majority of the population;

4) the distorted structure of the national economy, where the military-industrial complex played a leading role, and the role of other sectors of the national economy was reduced;

5) non-competitiveness of industries and agriculture.

The main conditions for the formation of a market economy in Russia:

1) development of private entrepreneurship on the basis of private property;

2) creation of a competitive environment for all business entities;

3) an effective state that ensures reliable protection of property rights and creates conditions for effective growth;

4) an effective system of social protection of the population;

5) open, competitive in the world market of economic

2.3. The main economic problems of society. What to produce? How to produce? For whom to produce?

Any society no matter how rich or poor it is, solves three main issues of the economy: what goods and services need to be produced, how and for whom. These three fundamental questions of the economy are decisive (Fig. 2.1).

What goods and services should be produced and in what quantity? An individual can provide himself with the necessary goods and services in various ways: produce them independently, exchange them for other goods, receive them as a gift. Society as a whole cannot get everything immediately. By virtue of this, it must determine what the ho-body would have immediately, with which it could wait, and what to refuse altogether. What needs to be produced at the moment: ice cream or shirts? A small number of expensive quality shirts or a lot of cheap ones? Is it necessary to produce fewer consumer goods or is it necessary to produce more goods for production purposes (machines, machine tools, equipment, etc.), which in the future will increase production and consumption?

Choices can sometimes be difficult.... There are underdeveloped countries, so poor that the efforts of most of the labor force are spent only to feed and clothe the population. In such countries, in order to raise the living standards of the population, it is necessary to increase the volume of production, but this requires the restructuring of the national economy, the modernization of production.

How should goods and services be produced? There are various options for the production of the entire set of goods, as well as each economic good separately. By whom, from what resources, with the help of what technology should they be produced? By what organization of production? There is far from one option for the construction of a particular house, school, college, car. The building can be multi-storey or one-storey, the car can be assembled on an assembly line or by hand. Some buildings are built by private individuals, others by the state. The decision on the production of cars in one country is taken by a state body, in another - by private companies.

For whom should the product be made? Who will be able to use the goods and services produced by v country? Since the quantity of produced goods and services is limited, the problem of their distribution arises. To satisfy all needs, it is necessary to understand the distribution mechanism of the product. Who should use these products and services, benefit? Should all members of the society receive the same share or not? Should be given priority - intellect or physical strength? Will the sick and old eat their fill or will they be left to their own devices? Solutions to these problems determine the goals of society, the incentives for its development.

Major economic problems in different socio-economic systems are solved in different ways. For example, in a market economy, all the answers to basic economic questions (what, how, for whom) are determined by the market: demand, supply, price, profit, competition.

"What" is decided by effective demand voting money. The consumer decides for himself what he is willing to pay money for. The manufacturer himself will strive to satisfy the desires of the consumer.

« How "is decided by the manufacturer, who seeks to get big profits. Since the setting of prices depends not only on him, then in order to achieve his goal in a competitive environment, the manufacturer must produce and sell as many goods as possible and at a lower price than his competitors.

“For whom” is decided in favor of various groups of consumers, taking into account their income.

Brief conclusions

1. In the last one and a half to two centuries the following systems operated in the world: market economy of free competition, modern market economy, administrative-command and traditional economies. In the last one and a half to two decades, a mixed economy has emerged.

2. Each system has their own national models of the organization of economic development, tk. countries differ in the level of economic development, social and national conditions.

3. The Russian model The transition economy has the following characteristic features: a powerful state sector, a small share of small and medium-sized businesses, an uneven transition to market relations in various industries and regions of the country, a high criminalization of the economy.

4. Basic issues of economics(what, how, for whom) are solved in different socio-economic systems in different ways, depending on the socio-economic development of the country.

Economic training

Key terms and concepts

Economic system; types of economic systems: traditional economy, market economy, administrative command (centrally planned) economy, mixed economy; models of economic systems: Japanese, South Korean, American, Swedish; Russian economy in transition; basic economic issues: what, how, why.

Test questions and tasks

1. What types of economic systems do you know and what is their essence?

2. Expand the essence of models of economic systems.

3. What are the features of the Russian model of the transitional economy (as opposed to the administrative-command to the market one)?

4. How does the Japanese model differ from the South Korean one? What elements of these models can be used in Russia to create a market economy?

5. What are the three main questions of economics that economic theory is constantly striving to answer, and what is their content?

6. How are the three main issues of the economy solved (what, how, for whom) in the market economy and in the administrative-command economy?

7. What are the features of the development of economic systems at the present stage?

Exercise. Build an economic crossword puzzle using the following terms: types, systems, tradition, customs, community, entrepreneurship, property, multi-structure, self-regulation, inequality, plan, planning, administration, centralization, concentration, state, models.

Economic systems- is a set of interrelated economic elements that form a certain integrity, the economic structure of society; the unity of the relations that develop about the production, distribution, exchange and consumption of economic goods.

These relationships can be carried out in different ways, and it is these differences that distinguish one economic system from another.

The use of resources to meet needs is subordinated to the economic goals that they pursue in their economic activities.

The economic consumer's goal is to maximize the satisfaction of all.

The economic the purpose of the firm is maximization or minimization.

The main economic goals of modern society are:, increased production efficiency, complete and socio-economic stability.

Modern economic systems

In the capitalist system, material resources belong to individuals. The right to enter into binding legal contracts allows individuals to dispose of their material resources as they see fit.

The manufacturer seeks to produce ( WHAT?) those products that satisfy and bring him the greatest profit. The consumer decides for himself what product to buy and how much money to pay for it.

Since in conditions of free competition the setting of prices does not depend on the manufacturer, then the question " AS?"to produce, the economic subject of the economy is responsible for the desire to produce products with lower than its competitor, in order to sell more due to lower prices. The solution of this problem is facilitated by the use of technical progress and various management methods.

Question " FOR WHOM?"is decided in favor of the consumers with the highest income.

In such an economic system, the government does not interfere with the economy. Its role is reduced to the protection of private property, the establishment of laws that facilitate the functioning of free markets.

Command economic system

The command or centralized economy is the opposite. It is based on state ownership of all material resources. Hence, all economic decisions are made by state bodies through centralized (directive planning).

For every enterprise the production plan provides for what and in what volume to produce, certain resources are allocated, thereby the state decides the question of how to produce, not only suppliers, but also buyers are indicated, that is, the question is decided for whom to produce.

The means of production are allocated between sectors on the basis of long-term priorities determined by the planning authority.

Mixed economic system

Today one cannot speak of the presence of one of the three models in a particular state in its pure form. Most modern developed countries have a mixed economy, combining elements of all three types.

A mixed economy involves the use of the regulatory role of the state and the economic freedom of producers. Entrepreneurs and workers move from industry to industry by their own decision, not by government directives. The state, in turn, implements social, fiscal (tax) and other types of economic policy, which to one degree or another contributes to the country's economic growth and an increase in the living standards of the population.

To better understand how modern how mankind has learned to find answers to its main questions, it is necessary to analyze the thousand-year history of the development of the economic systems of civilization.

Depending on the method of solving the main economic problems and the type of ownership of economic resources, four can be distinguished. main types of economic systems: 1) traditional; 2) market (capitalism);3) command (socialism); 4) mixed.

The most ancient of them is the traditional economic system.

Traditional economic system - a way of organizing economic life, in which land and capital are shared by the tribe, and limited resources are allocated in accordance with long-standing traditions.

As for the ownership of economic resources, in the traditional system it was most often collective, that is, hunting grounds, arable land and meadows belonged to a tribe or community.

Over time, the main elements of the traditional economic system ceased to suit humanity. Life has shown that factors of production are used more efficiently if they are owned by individuals or families, and not collectively. In none of the richest countries in the world collective property is the basis of society. But in many of the world's poorest countries, remnants of such property have survived.

For instance,the rapid development of agriculture in Russia occurred only at the beginning of the 20th century, when the reforms of P.A.Stolypin destroyed the collective (communal) ownership of land, which was replaced by the ownership of land by individual families. Then, the communists who came to power in 1917 actually restored communal land ownership, declaring the land "public property".

Having built its agriculture on collective property, the USSR was unable for 70 years of the XX century. achieve food abundance. Moreover, by the beginning of the 1980s, the food situation had become so bad that the CPSU was forced to adopt a special "Food Program", which, however, was also not implemented, although huge money was spent on the development of the agricultural sector.

On the contrary, the agriculture of the European countries, the USA and Canada, based on private ownership of land and capital, managed to solve the problem of creating food abundance. And so successfully that the farmers of these countries were able to export a considerable part of their products to other regions of the world.

Practice has shown that markets and firms are better at solving the problem of allocating limited resources and increasing the production of goods of life than councils of elders - the bodies that made fundamental economic decisions in the traditional system.

That is why the traditional economic system over time has ceased to be the basis for organizing people's lives in most countries of the world. Its elements faded into the background and remained only in fragments in the form of various customs and traditions that are of secondary importance. In most countries of the world, other ways of organizing economic cooperation between people play a leading role.

Replaced by the traditional market system(capitalism) . This system is based on:

1) the right to private property;

2) private business initiative;

3) the market organization of the distribution of limited resources of society.

Private property right there is the recognized and legally protected right of an individual to own, use and dispose of a certain type and amount of limited resources (for example, a piece of land, a coal deposit or a factory), which means that and receive income from this. It is the ability to own such a type of production resources as capital, and to receive income on this basis, that determined the second, often used name of this economic system - capitalism.

Private property - recognized by society the right of individual citizens and their associations to own, use and dispose of a certain volume (part) of any types of economic resources.

For your information. At first, the right to private property was protected only by force of arms, and only kings and feudal lords were the owners. But then, having traveled a long path of wars and revolutions, mankind created a civilization in which every citizen could become a private owner if his income allowed him to acquire property.

The right to private property enables the owners of economic resources to independently make decisions about how to use them (as long as this does not harm the interests of society). At the same time, this almost unlimited freedom to manage economic resources has a downside: the owners of private property bear full economic responsibility for their chosen options for its use.

Private business initiative there is the right of each owner of production resources to independently decide how and to what extent to use them to generate income. At the same time, the well-being of each is determined by how successfully he can sell on the market the resource that he owns: his labor force, skills, products of his own hands, his own land plot, the products of his factory, or the ability to organize commercial operations.

And finally, actually markets- a certain way organized activities for the exchange of goods.

It is the markets:

1) determine the degree of success of a particular economic initiative;

2) form the amount of income that property brings to its owners;

3) dictate the proportions of the distribution of limited resources between alternative spheres of their use.

The dignity of the market mechanism is that he makes each seller think about the interests of buyers in order to achieve benefits for himself. If he does not do this, then his goods may turn out to be unnecessary or too expensive and instead of gain he will receive only losses. But the buyer is forced to reckon with the interests of the seller - he can receive the goods only by paying the price prevailing in the market for it.

Market system(capitalism) - a way of organizing economic life in which capital and land are owned by individuals and limited resources are allocated through markets.

Competitive markets have become the most successful way known to mankind to allocate limited productive resources and the benefits created with their help.

Of course, and the market system has its drawbacks... In particular, it gives rise to huge differences in income and wealth levels , when some are bathed in luxury, while others vegetate in poverty.

Such differences in income have long prompted people to interpret capitalism as an "unjust" economic system and to dream of a better organization of their lives. These dreams led to the emergence of XIX century. social movement named Marxism in honor of its main ideologist - a German journalist and economist Karl Marx... He and his followers argued that the market system has exhausted the possibilities of its development and has become a brake on the further growth of the well-being of mankind. Therefore, it was proposed to replace it with a new economic system - command, or socialism (from Latin societas - "society").

Command economic system (socialism) - a way of organizing economic life, in which capital and land are owned by the state, and the distribution of limited resources is carried out according to the instructions of the central government and in accordance with plans.

The birth of the command economic system was a consequence of a series of socialist revolutions , whose ideological banner was Marxism. The concrete model of the command system was developed by the leaders of the Russian Communist Party V. I. Lenin and I. V. Stalin.

According to Marxist theory mankind could sharply accelerate its path to improving welfare and eliminate differences in the individual well-being of citizens by eliminating private property, eliminating competition and conducting all economic activities of the country on the basis of a single obligatory (directive) plan, which is developed by the state leadership on a scientific basis. The roots of this theory go back to the Middle Ages, in the so-called social utopias, but its practical implementation took place precisely in the 20th century, when the socialist camp arose.

If all resources (factors of production) are declared the property of the whole people, and in reality they are fully controlled by state and party officials, then this entails very dangerous economic consequences. The income of people and firms ceases to depend on how well they use limited resources how much the result of their work is really needed by society. Other criteria are becoming more important:

a) for enterprises - the degree of fulfillment and overfulfillment of planned targets for the production of goods. It was for this that the heads of enterprises were awarded orders and appointed ministers. It doesn't matter that these goods could be completely uninteresting to buyers who, if they had the freedom to choose, would prefer other goods;

b) for people - the nature of the relationship with the authorities, who distributed the most scarce goods (cars, apartments, furniture, trips abroad, etc.), or occupation of a position that opens access to "closed distributors" where such scarce goods can be bought free.

As a result, in the countries of the command system:

1) even the simplest goods needed by people turned out to be “in short supply”. “Paratroopers,” that is, residents of small towns and villages, who came with large backpacks to buy food, as there was simply nothing in their grocery stores, became a familiar picture in the largest cities;

2) the mass of enterprises constantly suffered losses, and even there was such an amazing category of them as planned-loss-making enterprises. At the same time, employees of such enterprises still regularly received wages and bonuses;

3) the greatest success for citizens and enterprises was to "get" some imported goods or equipment. In the queue for the Yugoslav women's boots were recorded in the evening.

As a result, the end of the XX century. became an era of deep disillusionment with the possibilities of the planned-command system, and the former socialist countries took up the difficult task of reviving private property and the system of markets.

Speaking about the planned command or market economic system, it should be remembered that they can be found in their pure form only on the pages of scientific papers. Real economic life, on the contrary, is always a mixture of elements of various economic systems.

The modern economic system of most of the developed countries of the world is precisely mixed. Many national and regional economic problems are solved here by the state.

As a rule, today the state participates in the economic life of society for two reasons:

1) some needs of society, due to their specificity (maintenance of the army, the development of laws, the organization of traffic, the fight against epidemics, etc.), it can satisfy better than possible on the basis of only market mechanisms;

2) it can mitigate the negative consequences of the activity of market mechanisms (too large differences in the wealth of citizens, damage to the environment from the activities of commercial firms, etc.).

Therefore, for the civilization of the late XX century. the mixed economic system became predominant.

Mixed economic system - a way of organizing economic life, in which land and capital are privately owned, and the distribution of limited resources is carried out both by markets and with significant participation of the state.

In such an economic system the basis is private ownership of economic resources, although in some countries(France, Germany, Great Britain, etc.) there is a fairly large public sector. It includes enterprises whose capital is wholly or partially owned by the state (for example, the German airline Lufthansa), but which: a) do not receive plans from the state; b) work according to market laws; c) forced to compete on equal terms with private firms.

In these countries the main economic issues are mainly decided by the markets. They also distribute the majority of economic resources. At the same time some of the resources are centralized and distributed by the state using command mechanisms in order to compensate for some of the weaknesses of market mechanisms (Fig. 1).

Rice. 1. The main elements of a mixed economic system (I - the sphere of action of market mechanisms, II - the sphere of action of command mechanisms, that is, control by the state)

In fig. 2 shows a scale that conventionally represents which economic systems different states belong to today.

Rice. 2. Types of economic systems: 1 - USA; 2 - Japan; 3 - India; 4 - Sweden, England; 5 - Cuba, North Korea; 6 - some countries of Latin America and Africa; 7— Russia

Here, the arrangement of the numbers symbolizes the degree of proximity of the economic systems of different countries to one type or another. The purely market system is most fully implemented in some countries.Latin America and Africa... The factors of production there are already predominantly in private ownership, and the state's interference in resolving economic issues is minimal.

In countries like USA and Japan, private ownership of the factors of production dominates, but the role of the state in economic life is so great that one can speak of a mixed economic system. At the same time, the Japanese economy retained more elements of the traditional economic system than the United States. This is why number 2 (Japan's economy) is slightly closer to the apex of the traditional triangle than 1 (US economy).

In economies Sweden and UK the role of the state in the distribution of limited resources is even greater than in the United States and Japan, and therefore the number 4 symbolizing them is to the left of the numbers 1 and 2.

In the most complete form, the command system is now preserved in Cuba and North Korea... Here, private property has been eliminated, and the state distributes all limited resources.

The existence of significant elements of the traditional economic system in the economy India and others like her countries in Asia and Africa(although the market system prevails here too) determines the placement of the corresponding figure 3.

Location Of Russia(number 7) is determined by the fact that:

1) the foundations of the command system in our country have already been destroyed, but the role of the state in the economy is still very large;

2) the mechanisms of the market system are still being formed (and are still less developed than even in India);

3) the factors of production have not yet been completely transferred to private ownership, and such an important factor of production as land is in fact collectively owned by members of former collective and state farms, which have only been formally transformed into joint stock companies.

To what economic system does the further path of Russia lie?

The fundamentals of financial knowledge are required for a person all his life. For orientation in complex issues of our time, already in the eighth grade, the types of economic systems are studied. The table helps to sort out knowledge on the shelves and remember the material.

Defining an economic system

The phrase "economic system" has several meanings.

1. The accepted and functioning scheme of the principles of production of goods, their subsequent distribution and exchange, consumption by users.
2. Systematization of economic life.
3. The type of organization of economic life in society, which determines the distribution of missing resources.

The consumer and the producer strive for opposite goals. Consumer - to satisfy requests with minimal costs. Producer - to make a profit while reducing costs.

Main types of systems

It is customary to distinguish three main types of economic systems:

1) traditional;

2) market;

3) team.

Increasingly, they began to distinguish the fourth type - mixed. It also includes the "Types of Economic Systems" table. Grade 8 is the time when children get acquainted with this information. The table presents the characteristics of each type, differing from each other in answers to the main questions of economic production: what to produce, for whom and how.

Traditional type

The name itself speaks of the selection criterion: the manufacture of goods is based on traditions. The way of life adopted in society, the transmitted skills of production, lie at the basis of the economic system. Social roles of a person are inherited, attempts to change are suppressed and occur extremely rarely. Production technologies are limited, and the goods and services produced do not change. Innovations are not welcome, as they impinge on the undermining of the established way of life.

Advantages of the system: stability, quality of goods, predictability of development. Its disadvantages: denial of progress, movement towards stagnation, vulnerability to external factors.

In the twenty-first century, underdeveloped countries are at this stage of economic development.

Market type

With the transition to the industrial level of social progress, a market system is formed. It opens up room for answers to economic inquiries. What, for whom and how to make, the manufacturer decides, focusing on prices and demand for the product. Self-risk, not a traditional decision, is at the heart of management.

Advantages of the system: striving for progress, freedom of activity, personal responsibility and interest in making a profit, pricing structure. Its disadvantages: uneven development (recessions and ups), the likelihood of unemployment, risk, denial of public interests, the elimination of social guarantees.

In most parts of the world, a market system was established in the twentieth century.

Command type

When the state assumes the right to make decisions on major economic issues, there is a transition to a command type. Each production structure receives a special directive regarding its economic activities. The initiative is not welcomed, it is suppressed. State ownership of the means of production does not allow a quick response to the changing needs of members of society.

The advantages of the system: stability, social guarantees, predictability at the level of central government, efficiency in the redistribution of resources, high moral motives for work. Its shortcomings: the responsibility of the central government for drawing up plans, the lack of interest of workers in the results of labor activity, a shortage of some goods, strict control and accounting.

The system became widespread in the twentieth century, the classic examples of manifestation are Germany in the thirties and the USSR in the era of socialism functioning.

Mixed type

The attempt to take the merits of the market and command systems and give birth to something new without flaws has led to the formation of a mixed species. Comparing market and command types of economies, the table presents the merits of each of them. The regulation of the economy by the state is harmoniously combined with the freedom of producers in solving major economic issues. Entrepreneurs are held accountable for customer satisfaction. The state is called upon to pursue social, tax and antimonopoly policies for the growth of the economy and the improvement of the life of the country's inhabitants.

Functions of the state:

• price management;
• creating conditions for the production of public goods;
• antitrust activity;
• legislative activity;
• protection of the most disenfranchised and vulnerable segments of the population;
• macroeconomic control.

Comparison tables

The table clearly shows the comparison of types of economic systems. Let's try to imagine possible structures for comparing the advantages and disadvantages of each type of economy. Let's consider each option, its pros and cons.

The types of economic systems can be presented in a different form. The table on social studies allows you to highlight the main criteria for comparison.

Such criteria determine the main types of economic systems. The table can be supplemented with a mixed look. This type of economic system answers the questions presented in this way.

Other lines of comparison can also be drawn. The types of economic system the table allows you to explore comprehensively. For ease of perception, it can be turned from vertical to horizontal position, that is, questions will appear in the first horizontal line, and the names of system types in the first vertical column.

Additional criteria for comparison

To compare in depth the types of economic systems, the table may contain other evaluation criteria. Typically, this material is taught at a higher level of instruction, typical for high school students or for students interested in economics. Below are the main types of economies. The table of criteria allows you to compare them taking into account modern realities.

Having answered these questions, it is possible to comprehensively characterize the types of economic systems; the table will reflect the pros and cons for each type.