DEFINITIONS:

SET OF CUSTOMS LAW, THE LAW RULES RELATING TO THE PRODUCTION,

EXCHANGE AND CONSUMPTION OF GOODS AND SERVICES.

AN ECONOMIC SYSTEM CONSISTS OF A SET OF CONTROLS TO DETERMINE HOW
MANY RESOURCES USED TO SATISFY THE REQUIREMENTS OF
THERE ARE 5 BASIC FEATURES OF THE ECONOMIC
SYSTEM:

PROPERTY OWNERSHIP

STARTUP COMPANY

ECONOMIC INCENTIVES

PRICING MECHANISM

MARKET COMPETITION
TYPE OF ECONOMY SYSTEM
CAPITALISM SOCIALISM COMUNISM
MIXED
ECONOMY
ISLAMIC
ECONOMY
CAPITALISM
Derived from the word capital (English: capital), which means "capital"
This system was introduced by Karl Marx
economic and social system that tends toward the accumulation of wealth by individuals
without government interference and seeks profit

Capitalist economic system driven by market forces in determining the production, cost,
pricing of goods and services, investment and income

capitalist thought this system creates an obvious disparity between the rich and the poor.
System contrary to this ideology was communism and socialism.
In this system individu will own the source and wealth without any distrubted.

There solutions
economic
power
there is
economic
freedom
maximum
efficiency
there are
power users
misuse of
resources
effect
externalities
lack of public
product
monopoly power
exists
lack of
laborers
SOCIALISM
This system is also known as the central planning system
An economic system whose goal is to serve the society, is general, not
specific individuals.
Factor of production or economic resources controlled by the state,
individuals are not given the freedom to have it.
government is directly involved in regulating economic activity.
Large scale production
As the owner of the factor of production,
government be able to perform large-scale
production
Fairness opinion distribution
With the guarantee of individual rights and
restrictions on amassing wealth to a
handful of the country, the distribution of
income in the system more fair.

Expenditure without rival
Monopolists (the government) in
production can avoid competition.Thus,
production costs will be lower.Low prices
give welfare to consumers.
Economic stability
Economy becomes more stable because of
the planning and control by the
government.
MISTAKES IN DECISION MAKING
Economic decisions are determined by a small group
of government at the federal level. Risk of making
wrong decisions is high, and this can affect the
welfare of the people.

LESS INITIATIVE AND MOTIVATION
Individual's right to acquire the basic necessities but are
not allowed to accumulate wealth independently. This
situation does not encourage them to continue to work
and work hard
NO DEVELOPING TECHNOLOGY AND
INNOVATION
Without competition, new technologies and innovations can not
flourishing. This resulted in the economic system continues to lag behind
and do not grow.
COMUNISM (SOVIET UNION)
Introduced by Karl Marx as the final stage in human society.

Type promote socio-economic growth of a classless society based on common
ownership and control of the factors of production and property in general.

The system aims to integrate the management of all economic resources.

Main idea was simple: Free the lower class from poverty and give the poor
fighting chance.
IN ORDER TO LIBERATE LOWER CLASS,THE GOVERNMENT WOULD HAVE TO
CONTROL ALL MEAN OF PRODUCTION.

COMMUNISME IS A SYSTEM OG GOVERNMENT AND IDEALS WHERE ALL PEOPLE
ARE CONSIDERED EQUAL IN AN ATTEMPT TO CREATE A FAIRER SOCIETY.

INHERITANCE AND OWNING A BUSINESS FOR PRIVATE GAIN FOR EXAMPLE IS
FORBIDDEN
Fairness distribution,all people get
Economic problems rarely occur
Any expenditure activities run smoothly
Can provide the perfect designation and sufficient labor
The freedom of each individual to progress stalled.
There is no competition between the public
People do not have any ownership of the resource
Encourage people to avoid work.
Collective ownership would not be efficient.
DIFFERENCE CAPITALISME SOSIALISM KOMUNUSIM
SOURCE
OWNERSHIP
INDIVIDUAL GOVERNMENT GOVERNMENT
COMPETITION
MARKETING
HAS
COMPETITION
NOT HAS
COMPETITION
NOT HAS
COMPETITION
PRICE
MECHANISMS
FIRMS CONTROL GOVERNMENT GOVERMENT
ECONOMIC
PROGRESS
FAST PROGRESS SLOW
PROGRESS
SLOW
PROGRESS
TECNOLOGY
DEVELOPMENT
FAST
DEVELOPMENT
SLOW
DEVELOPMENT
SLOW
DEVELOPMENT