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Overview of Traditional Economic Systems

The document summarizes three traditional economic systems and how they relate to the current economic situation. It also discusses the concepts of scarcity, opportunity cost, and tradeoffs. Specifically: 1) It describes the three economic systems: mixed (private and public sectors), communist (common ownership and production), and capitalist (private ownership and production for profit). It notes most countries now have mixed economies. 2) It explains that scarcity requires tradeoffs in choices and leads to opportunity costs, which are the value of the best alternative given up. Where there is no scarcity, there are no opportunity costs. 3) It identifies two economic goods/services related to computing: computer engineering design and maintenance of software

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El Almendras
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105 views2 pages

Overview of Traditional Economic Systems

The document summarizes three traditional economic systems and how they relate to the current economic situation. It also discusses the concepts of scarcity, opportunity cost, and tradeoffs. Specifically: 1) It describes the three economic systems: mixed (private and public sectors), communist (common ownership and production), and capitalist (private ownership and production for profit). It notes most countries now have mixed economies. 2) It explains that scarcity requires tradeoffs in choices and leads to opportunity costs, which are the value of the best alternative given up. Where there is no scarcity, there are no opportunity costs. 3) It identifies two economic goods/services related to computing: computer engineering design and maintenance of software

Uploaded by

El Almendras
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

ECONOMICS

1. Give and explain the three traditional economic system and how it affects the economic
situation at present.
A. Mixed
-The means of production are shared between the private and public sectors. The
government is involved with the minimum wage policies. In the Philippines I am convinced that
we have a mixed economy since we are capable of building our own businesses but we also
have to pay taxes. There are businesses that are owned privately and there are some that are
bounded by the government. Our country is open to international trade and is dominated by
private businesses, but some economic sectors are controlled by the government like
agriculture, health services, social security system, and many more. At present, a pure (applied)
economic system is barely visible in many countries.

B. Communist

- In the communist state, the people themselves own the resources and the means of
production. The people can contribute to the community by doing jobs that theyre good at.
And for those who could not work, the community will provide for them. There are no taxes /
wages that forces people to do work. This economic system wants the people to move on
their own accord. The objective of communism was to take out class refinements among
individuals, where everybody shared similarly in the returns of society, when government
would never again be required.

C. Capitalist

- Every individual or business under this economic system works in its own interests and
boosts its own particular profit in light of its choices. The operations are funded by profits and
not by the government. USA is one example of a capitalist economy because the production
systems are based on supply and demand.

2. Explain how the concept scarcity of resources related to opportunity cost and trade off.
- Scarcity forces us to make trade offs since our economy is composed of consumers and
producers. Since the scarcity that were talking about is our wealth, our wealth is liited but what
we desire, what we need and want is unlimited. In trade offs, we are forced to make our choices
when we want to buy something. Opportunity costs on the other hand are the value of the
decisions / choices that we may or may not have chosen. If something is not scarce, there is no
opportunity cost to using it because there are plenty available for free to be used in other ways.

3. Identify and explain (2) economic goods/services related to your course.


A. Designing Computers
- Computer engineers are mostly involved in designing computer based systems
to address highly specialized and specific application needs.
B. Maintenance of software and hardware components of modern computing systems
- We can fix and maintain computers to their best conditions.

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