under this system, it fosters the

The Impact Of The entrepreneurial spirit.

Different Types Of Economic system that has been planned

Economic Systems On A (commanded)

Business As resources are owned and used by the

Decision-Making government, the entrepreneurial spirit is

Economic system based on the free muted.Businesses are often controlled by

market (capitalism)
The market mechanism (demand and the government, and their output targets

supply) allocates resources automatically. are focused on necessity rather than

As a result, when demand grows, more profit.Central planners will direct

production factors will be used, and more enterprises to make uniform products,

rewards will be won.Firms endure fierce resulting in little to no diversity.

competition, forcing them to be efficient This type of system promotes the

and inventive. Businesses will take the development of the ‘black market’ or

required measures to reduce costs. underground economy, as people find

Because government involvement may be other means of getting products

limited, some corporations become sometimes not produced by the

perpetrators of environmental government or in

destruction. Being that people are allowed insufficient quantities.

to start firms Mixed economic system

This system is gleaned from the two
preceding systems and its impact will be a
mixture of both.