Economic Systems//Economics EP#3

Hello there fellow steemians. Welcome to episode 3 in our course on economics. You can check out the first episode here and the second episode here. As always kick back grab your cup of coffee and relax. Also while you are at it you may want to play the music at the bottom of the article.

What is an Economic System?!

So to pick up where we left off, we all have wants. Food, a beautiful home a ridiculously expense gold platted watch for no apparent reason are some of the things we want but as we all know you can't always get what you want. We don't have an infinite amount of supplies time or workers and that's why we have to make choices. But what does this have to do with an economic system anyway? Well in any economic system there are generally three things we have answer:
What will we produce? How will it be produced? and Who gets it?

Types of Economic systems

Let's take a look at two different economic systems: Market Economies and Commad Economies.
In Command Economies, the government controls the factors of production and those my dear reader are the things required to produce stuff like labor and capital. The government here chooses what to produce how to produce it and who gets it This is different from communism or socialism as in the words of Karl Marx

The theory of communism may be summed up in the single sentence: abolition of private property.

So true Communism is a classless society.

In Market Economies ,however, people are ones who control the factors of production. Businesses here make everything from shoes to cars. This kind of economy creates an incentive for businesses to improve their products and services for stay relevant to the consumer. A prime example of this would be the competition between Apple and Samsung where each company is trying to improve upon its products to win over the regular consumer

The Government

So it may seem like the markets work perfectly fine and any government intervention just messes everything up but that isn't quite the truth. See not all government interventions and regulations are bad. Think of the regulations that help protect workers or the regulations on pollution. So to be fair some form of government regulations is always needed. However, too much regulations and you end up with a slow and lagging economy

That's it for today. Let me know if you like the idea of music into the article and to get notified of the upcoming episode just leave #notify down below. As always don't forget to upvote and follow. Have a Great Day and SteemON.