Beruflich Dokumente
Kultur Dokumente
( Against
)
PRESENTED BY :-
MASUMI AMATYA
DEEPANNITA
MOHANTY
KARIM DUMBA
ARVIND KUMAR 1
IT IS THE STATE OR IT IS THE
MARKET
2
IS IT THE STATE !
3
HISTORY OF STATE
ECONOMY
ta te e co n o m y sta rte d in co u n trie s lik e :
Ø
q
qSoviet union (1922)
q
qChina (1949)
q
qIndia (1947)
q
qIraq (1979)
q
4
IS IT THE SATE
ØState economy is an
economic system in which
central government makes
all decisions on the
production and
consumption of goods and
services.
Ø
5
IS IT THE SATE
Ø
ØAn state economy where
supply and price are
regulated by the
government rather then
market forces.
6
IS IT THE SATE
ØIn this state /government
controls all the major
sectors of economy and
formulates all decisions
about the use of
resources and distribution
of output. 7
IS IT THE SATE
It is most extensive form is
referred to as :
q
q
qCommand economy.
q
qCentrally planned economy.
q
qControl economy.
8
IS IT THE SATE
A p la
Ø
n n e d e co n o m y co n sist o f:
q
q
qState - owned enterprises .
q
qPrivate enterprises directed by
state.
q
qCombination of both
enterprises. 9
Advantages of state
economy
Østability.
Ø
ØMeeting collective objective by
individual sacrifice.
Ø
ØComparison with capitalist
corporations.
Ø
ØPossible advantages over mixed
economies. 10
Disadvantages of state
economy
Ø Inefficient resource distribution.
Ø
Ø Can not determine as well as
prioritize social goods better then
the market can..
Ø
Ø Lack of incentives for innovation.
Ø
Ø Suppression of economic democracy
and self-management.
Ø
Ø Corruption .
11
IS IT THE MARKET !
12
IS IT THE MARKET
Ø
Ø
Ø
ØA market economy is free of
governmental influence,
collusion and other external
interference.
Ø
Ø
13
IS IT T H E M A R K E T
Ø
Ø
Ø
ØIt is an economy which is
operated by voluntary
exchange in free market and is
not planned or controlled by
central authority; capitalistic
economy.
14
IS IT THE MARKET
15
ADVANTAGES OF MARKET
ECONOMY
ØCompetition between different
firms leads to increased
efficiency.
Ø
ØForeign investment is attracted
as word gets out about the
new opportunities for earning
profit.
Ø
ØMost people work harder.
16
ADVANTAGES OF MARKET
ECONOMY
ØThe forces of production, or at
least those involved in making
those things people with
money at home or abroad want
to buy, undergo rapid
development.
ØA great variety of consumer
goods become available for
those who have the money to 17
ADVANTAGES OF MARKET
ECONOMY
Ø
Ø
Ø
Ø
ØThe size, power, and cost of the
state bureaucracy is
correspondingly reduced.
18
DISADVANTAGES OF MARKET
ECONOMY
Ø
Ø
ØDistorted investment priorities.
Ø
ØWorsening exploitation of
workers.
ØOverproduction of goods.
19
DISADVANTAGES OF MARKET
ECONOMY
ØUnused industrial capacity.
ØGrowing unemployment.
ØGrowing social and economic
inequality.
20
Characteristics of Market
Systems
PRIVATE FREEDOM OF
ENTERPRISE
PROPERTY & CHOICE
ROLE OF
SELF - INTEREST COMPETITION
Characteristics of Market
Systems
PRIVATE FREEDOM OF
ENTERPRISE
PROPERTY & CHOICE
ROLE OF
SELF - INTEREST COMPETITION
ACTIVE , BUT
MARKETS LIMITED ,
& PRICES GOVERNMENT
1. Private Property – the right of individuals to
exercise control over things owned .
Prices send signals ( Like HUGE NEON BILLBOARDS . High prices send
signals to increase production and for other producers
to
enter the market.
market
30
ECONOMIC CYCLE
31
PRESENT U.S.A G.D.P
33
PRESENT U.S.A G.D.P
YEAR MARCH JUNE SEP DEC AVERAG
E
2009 -3.30 -3.80 -2.30 -3.13
35
PRESENT CHINA G.D.P
YEAR GDP INDEX GDP Rmb GDP REAL
IN REAL billion at PERHAND ANNUAL
2009 TERMS current
21718 Rmb. GROWTH
7.7
prices RATE (%)
2008 30067.0 9.0
36
PRESENT BRAZIL GDP
37
PRESENT BRAZIL GDP
YEAR MARCH JUNE SEP DEC. AVERAG
E
2009 -1.77 -1.16 - - -1.47
39
PRESENT RUSSIA GDP
YEAR MARCH JUNE SEP DEC. AVERAGE
40
CONCLUSION !!!
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