User:Shreyahurrymun25/sandbox

What is comparative economic system?

It is a part of economics which is the study of gaining knowledge concerned with the production, consumption and transfer of wealth. It is based on the collective wants of the population and the resources available that initially create an economic system. -The performance of the economic system can be measure through the gross domestic product, that is it will indicate the growth rate of country. Normative judgments can be made as well by asking questions like whether the gap of the distribution of wealth and income and social justice. - Theoreticians regularly try to evaluate both the positive and normative aspects of the economic system in general and they do so by making assumptions about the rules of the game governing utility-seeking. -It is comparatively easy to predict the economic outcomes when the economic system of the country has either a perfect competition or has a perfect planning economic system. With those types of the economic systems, it is easy to offer policy guidance.

Key Roles In Economic Systems Common cultures may prohibit or restrict individual's satisfaction, ultimately changing of the rule of the economic game while on the other hand, competitive societies may abuse of the economic system and over-stimulate self-seeking. -Ethics, Politics and Culture play an important roles in determining the performance of systems. ( Discuss how each key roles is of importance in each of the economic system and compare each economic system-examples, capitalist system and socialist system)

Merit of Economic Systems -There is no unity about right and wrong economic systems. Each type of economic system can be compared, based on a set of factors but generally there is not a general agreement about which economic system is more right than the other. -Hence, there is no single standard that is able to evaluate indisputably the merit of the economic system. - Even though, facts can be gathered and models can be built to discuss the economic performance of a country, it cannot prove that any system is the best. -With the proper guide, it is enables to do normative assessments, that is measuring the potential,the moral and ethical reasoning of an economic system. -Systems can be measured relative to the achievement of the rivals and normative assessments can be done based on statistics of the living standard, the gap of income and wealth distribution and the level of unemployment

-The modeling of comparative economic is strongly affected by the perceptions on which accepted cultural, political and ethically motives are the most predominant as well as the importance of the demand and supply side factors. -Three school of thoughts: 1. Comparativists rely on what extent does the economy rely on the market and the degree of government intervention. 2. Others stress on motivation. 3. Most are more concerned with the interplay.

The World Economy after the Cold War

- Despite huge economic inferiority, countries like Germany and Japan were at the brink of complete success before the World War II. However, due of having a small army force and a lack of military weapons, put an end to the success that were previously within their grasp during the first period of the war. - Economic Systems' fundamentals changed drastically during the second period of the war. ( Examples of how it was changed) - Military forces grew to be of much importance than the gross domestic product or the population of a country. Countries that had a powerful military force could take risks and absorb the cost of mistakes and gain quantitative superiority against countries that had powerful economies but less arm-force. The table below shows the balance post World War II.