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    101 Chapter 2 Note

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    shanjidakterimi

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    © All Rights Reserved
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    of 39
    5 —e q jen-2. ' \ Exoromieg: ee Egonomia 16 the stody of lov Soaiely chorseg +o enploy fesounces te produce gods and Senvices and distribute. them oe consureption | Among various competing groups and individvels. Thene ane, two wagon bravehes of economies. They ane Micnseosnania, aud Maonoesonomiag | | | 7 ; Diffenense between macnocconsmiss and Muenoecsramiag ? Casis fon. Machoe cana mies. eet ee | ene es {) Meaning |dHienoceonomies ig the bnanch of A Macneeeerp mieg is the H ecoromias that is related te the study bnanah of eosnomies that Of individual househald asd finmly [duals itl the study of the behavioun im deesion making-and behavior and. pentanmarce Allocation of The nesounses. It [of the eeonsriy ini total. D comprises manket of gecds and The mest impontact fastons | YAnenot study 2) Micrweconamies stodiog the sensioes and deals with ecésnornia i; N lng issues. { | (06), Unemployment , walle [and gros nate efes . | Maonneconomias stodicg pactioulan manket segment of the | fhe-ubele economy, Thad dover __eeeromy. several wanket, seyments. Deals witht 3 Mienoeeonomis duale wih Various |3) Masnooeonmies cleale issues Like demand, supply facton with vanioug issues Like Pricing , product prieiny , ceononit, halional meeme_, distnibstin, welfane , produdlion, consumption oriploymertt , general price and mone level , money , ard mone, Bests of eanpatison| Mienogepromies Macacecchomieg ~f DVObjestiet WT avalys the boas MT amy the som individuals, heseleldg andifinms & and determines the 11 0 different ensestonr aninnmest tame ond onemployment el ja. and detenmines tke. product tel of the Gece Priing labon cost, and fastens of production. Heese Ee gee enna 5] Acproaclat 5) Ft is a bottom-up approach 9) It is a top-deun approach j Fpmae fon BETA APF fowand the deans rey « ———— fouands the ensnony - — ST te anbbiel t cacy Th ig applied to exvinonmental aaa I el tind ae es ul Fate he secves Like if Tt covens several issues Like 97) Seope.s 2) Tt covens feast issues Like ree eel | ae sipply, in Pricing ooaployruenl, money, general price j produet pricing Cconorut Welrane, : : tet anes and wane level, avd mone. eee : +7, 1 — : t uses the “Bl Oerelicianies: | A heed - sania The indwvideak consumens, sh of matnoesonomiee _ Producers, pros fo finmubte difonent economic households ote. ane The f policies. stake boldens of this brawl Study. : pat 4) Feewss 9) Miegocaononsieg foouses on > Macrvessiondes frevseg on | 7 ovencaming issues concerning the upholding issues Lhe emplose ( allocation of negounees and price emphymert and national _disenininaiion, estleld Income. Io] Metsds 1) The study is called partial $01 The study ic onlled general a sbhet ; equiltbniom. TH is beeaueo 4 equilibaium, as the stedy is : use based onthe mavenent of ane Att S08 the intendeperdence of variable by assomiing athens ane dHfenent ceononie variables. Constant. Basis of i a | a compenison | | Micrtoeconuities +) Maana'economies Tay St penpetuates Finmness inth, level, and Solves the 44) Ths useful iw negoliting the. prices od a produet alongside bread price son issues of the w) Significance s economy lcke i \ 2 ithe pniees of fadlons of predustin ma the eonomy li , [Uaboun, land, entnepnecn, capital, Jed bition, inflation ,nising Pricey, | | (neflabim) » onerploy me ut, and jand mate) within the ecenomy. { paenty as a wlole- : fy)Linitatine: (12) His based on impnactiiul Ti) bas been serutinised that the |pnesoppositions, int,in ‘| muiSaameepttion 0 composition’ |mienseconontios , +} ig pnesomed ineanpanates,, which sometimes ithat theres full erployment j fails to proe acaurate beeargo jin the community, whishis net lit is feasible that Dhak i's tree for aggregate (comprehensive) at all feasible. if jmay not be tnve fon individudls . j aguels - 42) Tools? 9). The basic. tools of -micnsteon 2) Pag nejece demand and wiensMtoronies ane demand agg negake ‘sapply ane the » © sand supply . | primary tools of macnoeconomics. (Af Foundagiins 9, {4) Mienseeonsrntes cansiste of (4) The foundadion, of tmaers - : “nddidual entities . _Ceonentes is miondessnomieg. 15) Vaniables ¢ 1M mitnocesremie variables ane— The macnoetonemic: vaniable anes— : sprice, + Tudividudl expenditine, * lnoss Damestic: Prodvet ; sFasheas of production Hage. “Unenphyment nate + Inflation. # Comgumptions. ¢ Tnvestmonts, *Twtenast nate ole. eponeree condition altedds businbecee) lS The acenomy met inalydes all aehevitios iy a_countay concerned wit the manufacturing -dstribiton and the vse of gods and Senvieeg. The coonamin condition las a big impact on businesses. The a alfedts paiees, investment decisions and the pumbelr of keke Le" jusmesses employ. : ; The egsnonia condition affeds besleasieg fiertan main o0iys SI Unemployment 2) Changing Levels of consomen inesme .’' 3) Jnast nekes 4) tan adkes. : Unenpley ment? Unemployment nefone to people whe ane actvely seelring “enpoyeert but ane unable to find bath 3 somebedy docs not havera gob. this does wut nacessaat necessarily mean they ane vnerployed- Some people choose not to work, ethen because they ane onaneially i Slable on becuse the have family to look atten. Olhens may | wot be able to vonk because they ane ill. Unngloyment wre rmeans tat am coonomy is rot rmalny Fo WU vse of the wonkeng that ane available. The. economy vill not grow ag quickly as it cold, and it may start ts slow door, Tis slougie dovwtunn in eeonpmia activity vill dinedly affedt | businesses - The national level of unentplyment ig given a5 a pencentase, the governmesit aim fon this pencerttage te be ag low as possible. Thene ane a rvmben of Neasons people become unenpleyed 4vth as being wade nedundant , mg digmissed fone anole, mu leasing dveition. sing tele fencomen cies Taine is Sane ip _ heceived eithen from wonk on Prom investmerct» The! amewit ot inane someme earns will tit lueces Woo bnuel they spend. TE congomen jrasmes ‘monease, general spanding i is abst lakely to menease- An inonedse tn spending ill ‘lial businesses expasd, leven unenply rent and improve the economy, Utes if! ‘onsumen incomes fall, spending is ely to deenease . Teas means “that businesses vill wet perdi, as pell , unemployment vill nise and the! ‘ecowmy.\ will be lege less. efeble. ce intents! nafest The iwlenest nate Nepnesents “Ike wen bornoving money on the amount a saver fe rs | Usvally stated as 4 poneerclye, the ate reflects bas mock is exnnel* on paid i” intenest. For example, an intenest robe of az ayean wteul| nepine $4 tb be paid enol year fon eveny $99 bonnowtd. Altenutly, a saven would neceive $4 a yean fon eveny $100 they invested. Jusbi> ged hayes in “interest nites ‘affect bah saiens,,. and bonnovsens . | Tnonesse. in, intenest nedes — Savens Will receive wone intenost on thein savings Mes oil ehoovnege ‘them to spend” less iso tlak they caw save mere io damevens “UAW Wave to pay ene bnckifon mercy That is bennewed. Tals wil digesnage there bere From, bonnowing. : = vit Deonease in intenest rales. Favens, Will neesive |1oss intenest,..on thein gavings. This vill diseounage them from saving 60 they, ray spend thein money inetend. ennawens ill Levert pay less, back te fon weney Thad is Lernouell. This vill ‘Tn couraye them fo bonne) mone money to sper. : 1 Fanest Adon is a Financial charge made, by a government on td Individual, —— . ’ Jalttteg ~ saaal Moho of ; onsumeng and businesses.» The UK has, anange ah types inh tanes. These includes s pe PTreme tax + Canponation tax + Matiowal Insvnanee Cantii bittins (NIG) oNalue-adde) tax (VAT) - The seenet te Cneating a Weald Econarty t SSS Thomas Malthus & The Dismal Sotence Malthus Welieud thet ib’ the nial had rast ot the wealti! due the pon had must of the populatim / nesonees wold nun out Tuis elie! led the vniten Mag Co Carlyle to call ei “The Dismal Soience”. Followers of Malthus (Called neaMaltlusiens) sitll believe tate an that the salvtion t poverty is pants ‘and stoni eatin ' : Doe ia te many people iwithe vonld and Aadicad. birth corctnol , ingloding forced feneed Malthus believed” tuk id people ‘vere sabnbd thein on devi there wld be chaos therehire thi govern ponent needed to be hessily ‘volved in may “the economy . Nad sh Population as a Resounces 1 Contnany te Mal{hus, some econo mists beliove slang porulon ox le a nesougee- Ay clued *pepolién is Wybly valvable, Business olnens provide., ihe and eenromie growth fon thean employees | and communitios as vel as thn Hemselved Malthus viewed a lange population ™ as aihegabile Hevseven, mst ororomists odaus cee & highly edusstod: population QSia valuable, Seance Nesounse, ' ibe) Qouvenies Le Japan, and Gaara "ane examples of sactans ted have beeome enovornically suetesstul due te lange ivell- ddu populations preducing sophistiosted igh. value prodvot Adam Smith and the Cocation of Wealth: Adam seth envisioned oneatiny mone nesonees sot venyor vonltudn He belived that Breeder ums vil ei elites emt bon Ctoromy / especially the Preedom to or, land on, propenly and to Keep profits Prom vonking the land on running a businesg , People will unk hand if they believe. they pill be newanded « Adan Smith's ideas ene laid out in leis seminal bk Ra Trg the Matute. and, Causes of The Wealth of Siete! vias L published. ints in [RRC- Smith believed strongly in mune “natural betty” and less government inten vention int the economy » He argued de that allewing people the fneelom te own land and the night te Keep profit i esould. wat oneate. Qhass ag Malthos hod angved » Lot rather iol) cnede greater, resources fon all. J} How dees the invisible hand eneate coal. fon a courdtny D \ Twoisible Hand means, when self-dinested gain’ leads te sovidl land cooranie benelits forthe eshole community: the! invisible luwid wae atthe eant of Adayn’ Smiths thesiy,, desenibiy he. proaess of tunnivy : geld dincaked gon ins social and eoonamia 'behefits fon. all. Tn Adam Smith's view, business people don't necessaaily delibenately » cat out to ule athens. They coanle privanily Be He, oh prospenity and grout, When people thy fo impnive thein own sitvation than ‘iw ite, then efforts conve as an ‘invisible band’ ithet helps the. economy gre and, phospen tanavyh the preduclin f heeded gods, sonviess and ideas! hy I : The phrase invisible Vand is 050d to degenibe ‘the '‘prodese thal tonngs self- dineted gain into social and. éooviomie benefits fon all: BH The invisible hand allows the’ manket te reach equil-baior uithout': govermerit on othe \tonventiong forcing it Ywte unnatural patterns. Wher supply and démand find equilibrium vatunally , ovensupply and shentayes ane avoided. seta eat of el a aif ib best ae acitselh in the rmanleel, ‘the omall Lesinans doades it vil invest inn baghen quality iatenials Bn te ; mranvfastoning process as voll ag neduee its prices. Thoogh the gmalh \yusiness Maybe , deing out of the best intenest of its conpany , the svisible hand is af wonky, as Hie’ Spanlett hows has ‘adeess ‘to mone afndable yet Wigher quality pds: The only way fanmens can besame iualtly is te soll seme ot thein eneps to othens. # To, beasme eae even voealth gin , they have-ts line, workens ‘te pnoduee mone £sod. $0 the Lanners! coll -corctened affrits +6 become voealthy! lead te jobs fon gore and food fon al nost all. So the iwisible hard is the idea th cpecializdtion in products tan load solf- intenested individuals to produce va is socially . hecessany and fon the ges of all. This is because imenenced gpesialieation vadunally leads to aveb of imutual mtendependecies such that a shoemaker Lill need others ‘to prodoee thein rouge, ford, eltling char: wrile a tromebvilden vill rely on the Shoemaken fin glues and othens te fon thein own olottivy » fred, and soon Mankel fences amd corupdition will incentvize pneducens ty wake Fubak is, west profitable af tke levest cost, also ensounaging fepleralegi eal | progiess and innovalion , dog the benefit of all. ° fH How eonnvption haere the econamy) > Thene ane vurencvsn Tenees in pooh edvntnios thot linden. eeonomie, go's and dewlepment . One of these fetaos is connoption. : Evoro mies ane that ane afflicted by a)Vagh love of connuptcon ~ abieh involves the wmisose of powen iM, the form of money ol authenity to ahve certian pals iw ‘llega, dig hmest , on undain anys - ane rot capable of pres perting aS folly a8 those utth alow level of sermon _ Oonaupted ennidvies ane wet able to fonateon phoperaly beeavse connuption pnevercls: the. natunah, laws, of the ceonomy Nom ts -tarlongetaese fondling Prey. Borehts of Capitalism y Capitalism’ ig bam “ eohnomio gystem in which all on tere most of the faclins: of produetion : ahd -distiibilon ane. privately ovved and opendted fon! paolit Tn this ‘type of coonomia £tnoaktune privite. individuals ane unrestrained: As suck. they ate free to aa detenming whene to invest thein, money - uilut to produre on cell, and phioh. phiees to exahange Thein gods, and senvices onthe oper mankel: The benefits of capitalism, ane given belowt FDPrivele Phopentty* the night te private propenty is & cewtnal tenet talism A private athzer may punchase property from anothey nice nathen than one of capi private cikigen at a. vertvelly ; agneed- up P dicted by the gornnest: Private poopentty Important foundation of capitalism Produdkion These nights leony gepenake tthe ownership atthe means of pnoduckion from the workers © owns the factny ond the machines used init, as vell ae any that ane manu dactuned. An individual fastony is only entitled +e used ralate de. They lave nil ounens lip: aights to rights sane an le use them. Fon insdauee, au trctnepreneun finished preduds replyed by, the jo the wank they de. 7 the propenty i epiprent , on Liakhed gods: BlFactene of Pheduetion? Private entenpnise Gontnols the factong { produetion in captalisn , these tastong Imelude land, labor and capital. Private companies dontneli aud doplir a min ; Alles baokens ak at lewls that soak tii wanimize a elt creney. A Aecumuliion of Capitals af ach “The centenpicce of a capitalist system is the ee ‘od capital Ag saith, profits ane the dniviy finoe belind | any eopromia “ahi ty » Cépitaldst, See Awassing poolits as a vay tos o provide x powento| imeentie ty wank hander. «Enno vate wone_ - ° Pnoduee Haig tings mone eMfcently than if the joerg had stale. contnal oven citézeu’s! not wort Tass financiel incentive, is the neason capitdtct Cacvenied gee wnevellion 26 feng Landi Land with Thein manket System Wark ee [ mankels ‘ai and conpaitions Competition is the _olhen vital odin’ bute of a capitalist ays ter. Private. businesses compete, fo provide Osnsomens with gorde and senviees « that ane. beter, fasten , and cheapen. The principle of cxmpettion fonees businesses ts maninize Hficieney: aud effin thei products at the lowest Ptioeg the manket vill bean , leet ’ they gt pt out of bus'hese Ly mone efficient and betlen-pricel ponipelitons i Be) Rising ving standards Capitalism has pentnibeted to ‘nistny Aning ctandands and fall iw absolute poventy - Ginae China and othen cowclnies of South-east Asia besane mone tapitalist and nee; ranked rthein boononies have grown leading’ te! a raise | by Living gtardandg and 4 fallin levels of poverty. DD Frofestional Senvices Choices? Capitalism provides fon ilies’ in professional donviees . Eveny pengen Can pile aud choose whoeven | they vat to werk fon thede st TE ypu. don't} (ke one | Company in the punuioes te abfens ) ysbhe free ty, shopaneurd and, bine 4 company thar, gives . you olud youlne jleokiny fin intenmes of prodessimal senvices . 7 By Pensonal Freedoms Capitalism ensunes The pensonal Ireedarn i‘ persve your own dnéams' and goals. tf “you vent Fo have aicen ta cancer, yoving ‘faeots take’ classed? and enten thet, careen , all tanks to capitalism. The classes will be avai ble to jyor aud you'll be allowed ts hang, a shingle fon whateven business ype wont to ge inte. | Disadvailages of Copitelism: \ BL vegge ttle ee df = Tk a capitalist Be- system vhene the means of paedodkion and disdributsn of! gods and senvides ane owned by just afew menbens of the society, the wealth ofan gntiae vation cold be covtnslled by jost foo veelty sadnaduals and familisg. The nest of the people, whe depend on fhe langeness of the nich though jes offened te there, live the vert. The vaealt of the. vation mong the bulk af the reple. Prem one pay cheque te is wt evenly dicta! buted. axon cold _nesult in dosts to the, envitgnmarl? The derive. eet ook alist sistem gomtetimes ; pushes the aur A iudasley Eto go thts the extremes, all fin tho sake af protids,, Fee Due to waarkok beiny dewen by pat and demand driven, ney! ive coutorne ertennalitios guth as polution ane generally ig noned until they become & genious: issue Ce lads 2 eceasity to neds tthe, money supply inthe B negolve thee” isguége vay |i in a capi within The eonmomy. Thi | eoonony +? riage of od ome Ten segs Apr ply viv between the ownens of industiny who wart te py lexis Sud ; 7 . 5 4 Salaries ty enbance thein profit ranging anh ee a 7 o beliowe Tren vyes Hust be imeneased iM consonance vith the ofonts uJ pr inte the pneduclin of yords and setivioes » This, power chy ploy | Results in d= in industeial omnest thd cold affest fhe\ stability of the. saath. ; EL Ewpeding * dink “sl dealiy Uh Seeialiste and communists ane people who ne not serpent opitalisn. ot bay hunts ‘Lonkers because * businesses rake. were - mimcy by selling hangs than | thos pny the vonkeng “hy pale the things » Bisiness orhens beeome aia while’ vars Remar, pearl aud exploited. Eaok, penson weeds tae ‘right of bagia! needs Within eapilalisns, sit Git pele gw vat! 4 aa thay. | ~ peed ts bve- I Bee. Satyr Predete! ts ‘tuhsumensd Due ts. the m antl prodee eld be ‘ an i the oe “the produce they quality to woindan dompatston inthe , business , the paeduets they pmduce cald be of Gu! qealety, to maintain doping pricing. Tes ill nega negetvely onthe consumeny sinae_the products availoble ane les iw’ quality awit whitch. does. jut sabishy then needs. oh — _Adventages of Socialism: A Collective ‘Ounenship? Tra socialist economy all ‘the majon any manufactvring units Lactons of produilen and the Nesoureg ane. owned by the _gpennmenit on the stato. Private ovrenslep ig only olloved 4 gmuall, firms and individuals. Eqvol distribution the people 's the “\malw objosbve thenefene! oh the exmmand and the chde. 4D and velline of yhene is" collective * gunenship A}tentod Feworie Haining’ Tye sosilie! ezormy « corral eeoromie plamids toroittce is faowed. They bove The oobatity ” te deride whet pill, be produced vith the adh ay cal decide the methed of produition, and the quantity of phldades | as. well, . Ib epee. . 23} Rejetin A seivinatins Te system disapprives’ sis baiviitncbion, od each porison does pal he s god Ue bn dab inhe enjeys lest. Tt thene ove apbs that se sbovld be dine cand thene, : is woone to penton them, 2 higher hem nation is | provided - Netunal nesouees ane protected don pe eternity: d)No Laban expletiaton’, 7 * dis enim nation Among people: Equ poople im Tenms of eeeupation Evenyone works in a happy Thene ane vo strikes , loekdowns on any lind of laben proble: a cootalist eeonomy thene is w | al opportunities ane given to | Minit 04 6] Optimum ut lizabu ' soci ERE ment All the nesounees ane vsed ia plainell manne suck that dhend is vo winetage of nesounees, cibedion od negounces is done. Since the main objedtive as ane also osed in sywulan taghion. ¢ The socialist, nitions public vel: being like Optimum jg wellane , Mesoune a) Jngrntd_slandnds in_piblie: vellee generally Lave many policies ‘to ia prove fee oillbeane,,' less cast transporabion » an) abfonlable pniveke medieane - Thene is @ (man ad varttage fon the gerenal poble, FA greed Loin pradesy Socialism foovsed to gt tha work “frame the “Yalanens by tanly, pasiny jon, ville providing god oguipnert, \ronlthoane and other bonelits ton Ahem This vill mativation » vlach leads to prodectvily improyerencts inonense (akon Bf Less propel level whe socidly# @ The fplol jneome of The” gtayelune » The voelfane coviety is nedigtnbuted iw the socialist U gelup ig immensive in The cotialist system. Every gt adequate netuons te Ail their basie nobly. Each person las the guenantec te aceess essercial gordy vlich Dallas "to eiviwine poreity Wels im sooiaty person vi Disadvasclges of GSocialisms | A) Dependenee dn _coopencive polings “Perhaps the gristest disadvantage ot a sotiolist sys tom as its nelianae on coopenahive pooling to get Things done. In addition, people whe! ane competitive ithe commily og \yhte The s00idly expecls on oponibion alitive ane, viewed A wx megohive bg competitiveness. Aeaarding 7 socialism, come ial unnest fon pensonsh. gain tend to Find ways ty cause 99 Socialism dees not newand and wit ndiaduds a)Lack of compatitiveness and innovation’ extnopne neural vorctunes on competitiveness « Cons gocualistie system does wel encovnage iwnovalion, as etneliincs arto Merman ip hanily rosled ‘a gotialigm and ig The driving Snee Helin all storanaie! to riclinog: Qa workers! ban ig vel! csmpandbles put of privde etenprias. mt ches ” rele pean tasks eanuge, it is thein responsibly ag vill be paid neyand less of The ovteome: Ayame), in efieiones dovelps, and ‘the eoonomy suffens w the by tonw. gl Bail Stomt Distr: oh scat agers Bt pfied the goerwnment covttnols averty Onen od fhe epee sat a lee oxides of sotialism ts that the forces of demakd and supp de wt apy - Ne anesolt, nathen than beng sy sguandened in the long tenm ithe esovomy becomes a state, Vheneas then, make an’ Coonomy gino Bl Hiden tas, borden Socialism cneates a significoney) siguidicant y Laghen tar bender fon tndividuals. When an ccanomy has a high nie of pregnessive faxcdion, Then thene Ane une digincertives thay benefits to ensiden her wonky on oneing a business opportunity. Lack of motivations Ertnepreneons rave vo ro motivedonn to openate Since they TA Anu ownens. Sovialigm can cneate ovnenship oppentnities, but it ic nahely fa the individeal: That means etnepnencuns ane dct inshetly dts imcantivized {nor puting in the effent to buld op & huciness dnom gonalel . Eun if the govern gprennniott doesn’ demand 100% ounenship of the verlne , Those leadens caw fool Uke thein governiny offieuds ane takivg am unnecessani ly nigh pencerilage of dhein prot Tha moans Them vonk vaighet go ovenseas gomewhene since dene cold be dewen nisks assoeided vidh thein venture 1 Bededtion of Jofoelacet Lobuntneet A socials! Sociély genenally consists of 3 a ged wellane state. The doonside of this is That people vill wt be wvtrdted to comlnibite do soecety with the —— en wellane a ‘They receive. The leben fence could be nedveed due t Has doctor Since people will decide ty stay cf! Lome naken than pungue a Caner. eclake, lads, heimogaiegt Wren villas “etate ‘of Zoosalect gpermmest ie Toe generors, then thene ig \ a dis inoetive te bind find jpb- tat meas “the souidly . May See a nédedtion ints dan fence as people decide ts stay \ome Instead of punsving aenneen. Tlel!s uy pouty avertvally develsps Moe soem sends Sain grindig goto remnred gpending to heaprave gooidl wollane . Tris will negull im mone level ab government spending wlio will affoet the nesenves gagton on pondenic, Tho gremned the dion. Ih Nene Wolo & cadl coll wot hart adequile hes Vud ef diffiall Bre- Algo, tas vill obfes tha Balaton Latween Sneiyis” taal aud domestic spending ac,well- enves! to guscessdully pranage Ls @bapitalism vg Seciabem: Whioh ig batten? > Capitalism is an eooromie system in Lich imestment in and oununskip of the means of production, dictibitin and exharge off vealtt ig mate and raaintained cliel ly by privet indviduale and conporaboing. Sotialigin ig a theory on system of social Organization inwhioh the means of production and dstnibition of goods ane oumed aud cordolle tllectvely on by the government -Tha simplitied rashell, capitalists vot lege govennrnent oomens lip Land covialicts vant mone Permment gunenchip. Metis coorctraes tha lave achived the gnentost qmount of ttromme suesose oveh the yeons and cantonies have beox those thd EDs have embnocod capitalism (the Unid United States, Japan. Louth Koneg | “ Aastalin to name gost ates) - Thene is 4 Sratening of soviali mixed ints these countnies’ ceonornie. syctems , The ingnediants tha seam to have eavsed thd sucess have been the night to om paivake property , and the incentive te neap the Lonedits of youn hand vonk and doe Klijenoe ba gonning and Keepiry the monetary beneltts of the fruits ‘of goon € liber. Sccialigm, onthe then bond, is popu ammoity the masses that hn come neasin Lave wil had the finenslel coceacs Tt ofleng have gain, *ffnayle Thain Leber, Like inthe tapitalis! syeteme. The pre doninart coodabst -onieled covrlnies df Eunepe. and Afnies ; and Cuba an) Venezuela inthe Latin countries, vill tho“ posten’” cauntry of dicastey trneeoo, ane all obese ts jon onthe venge of banknoptey. Ik ae {hak covnlnies tak espouse a plethona of Prrnment erttlenert phognars Cyiverneys aud hardots) ane the ones in dine Cl strats, Wer cor say Tha the old expression, “Thene’s vi suel Thing as atnee bmol” applies to these courdnies, oncept bn the governeronct piles whe become the Vesltly class while the mas jialtow in poverty The enpitelist believes thek wealth in the bands of bright, hand- onkins people (oxtneprenenns) vill be the ine gvoregstul, ’ Flee never ard betten | prodvets and senviees beeavse of dhe on Eitan of the monclany, nesends Crm whiol they vill benef. ny bebeve in the “trickle dow” prospenity, ee Breet gotiabisls espouse | que satialists, on The, othen and, say thd vaedlth contented ix the ands of the wealthy capitalists produces” a society of ads niet people and many pen’ pespla” vith the: Terdauey fin the mich fo metake aduocleye A the less Pontnee They chain thal wut vil neta eventually be the dental at the capitalist system. : Crnwtled, thane have been nane abves on the pant ot capt alist own the yeans in how They acoomulated Alein wealth, Lot ted j' the pile Ye pay ha boeing able to te inthe west wodenn, Advanao) tavrtey im the sanll, the United Stites, Most ntisnal capitals ty believy Tak the goennmont oan and should play a nolo in oun copitaliet, syston by chayping tor on freed and the exphitdion of labor, Howewn, one we take the incentive away, by ponishin ‘Then by menting and impasing eteess negulitions, Foam people to he the oppentonity to betten themselves Brnaneally by thein intelligenae ard Nand nk, yori ve kil the inovetlin by trymy te mete evenyome have the Same ovteome “mn Ue . Abas of Comers a communist caynlag negime , poeple ane dnealed ep Fi, eyes of the _goverineney negandless ol! eduedlion, Jraroial tik J Lpoudanios don't sepandle on categorize pple ubich co help “ and viclente-! vol : ithe gounnment dedkdes Akgyly: Economic vritigeh ermine aye He omnicef Terme etonartit Gdnuetone Buen citizen is noquined to role dex'd have cannes ponding ganthion s. This ‘on paribipale and ts ontounaye eco “Ufo ab dlain, of jwsmgeet Ts a comin! tg, sty allows fan cfficinney in nesounce digtaibstin . Thes IY dal i tmaigony vis oot of the, gyvestion. ndagive: benefits, and these tates an incentive to dhenelore, econornie instability wienk in ondon to nomi, growth dhe sense. of ‘ peopenations ig, veny impontaet, especially in Ai situalions. f i A) Dasnd all bosinass nnorbst singe! the gommmont owns and conta the business 05 Walle a5 alate the ‘money “te be! epont Jon prodvelin tasty, thene tg we business competition al "we imawufachnen is better than the othen. This means “er manvladunens can only pnedvee United nomben ol oods and ane yrable +o domard fon hayhen prices fin thein commoditios puck and wonopolize the marked - ( i or . 5) stronger _savial_communily? Th communis, henge: ane certain (aus as] gprs vdich determine Masounce aud nesponsibi lity allocation. If the citizens abide bby these laos, Thas leads fo Harmonious spinit al. Consequently , this builds stronger soecal ol “shaming one go dommunities Adan even strangen Ceonomey. E}Ecorwmy of MWe nator 1s covdnally plenecls planed Communist, . nabions plan Le antine etonimr'y thaowyh “a dental govennmerd ad.weanisinakon This means that “the inlnastaystone development teke transportation, roads, and: services, cor, be ‘pull planned by thes adminis tnadion fo aahiove & lons-term angel. Since evenything is planned corded, the governmmoxt eon Thank of all dhe aopecls and éneate a tanget- Since everything is plemed oevtrally, the government wn dlink, ot all the ag pecs and onoite | a low long term gustainable plan fun qie’ eveline economy of the natin, lony-tenm Boality public wellbeing: The governments a) estighoens vations con sidan “Pray things te ‘ompreve poblie well-being. They otha beef fpw- cost senvieos fon edutalin, healtheane aed transpontakion- Even the poorest people aay have atete with: quelty vell-beiny ' due to tose. , : , 4 3 1 Communism’ Teens, pra See Oy of the: s&ttba-sitbacks of Gemmunison 7 4) Hampers " cathe bins of the people. Sine iso chaste Noa flyby, U! 4 status and noone UE alidve the tthiens A be a digadvavtage since 2 te will fel they ane ad the end iy om : i , because thene is eo 70 °n personal tempo ort Te Gaon, alls medica professions, medicines and lespitals onl foes of these professionals ane negulated dan leghen toes. in. socid dun exon controlled by byte gone BMless Ginaneiah Sreelemt Unlike capitalist on densondkie gocdotios, communist soviet does niet allow private ovvenship © businesses. All the common public will ‘wdeod ave the same level of vealth, iit vil dialow naidicl Peaedsin fate parple- Skilled poeple: de wat to! stant a new havetle the noom to exnn “mone by wilizing thain ‘skills jhe grennment ‘The sand they serene dered businoss [ innovation. ; ) ’ ¥ AIyore the needs of the _consumen Ina communist government, The t » The True a ol the oonsumen cool) be ignaned. Tene could be the idea ‘of Lavi Me bane winimauen Weveb +o sunvvelite, which could result in the a, us “4 wreding The fnue wéels of the end consemen.: Ta) Lele of ievwdint_Paike. oioeprenanship it. Sever! By) Hesse private imwestmedt In The waion Is Unite Gn ' tnaavabion] nesearel i the von, thene shold be an initial captted and the nesult shuld wake a profit de te sunglus the iitial cast But ths Vand of me neseanch aohivity +s wot commonly happening in Cormmunist » wehous. 5) towarment _overespendings Communism promotes government spend te \mphove sotial vualbane. If te goveninment spends a ae dhene is a alsagten on fondemie, the Communi sim. Q Keeping reserves, xd if i govern governnmert cewld wt soevesstully haaase thi, lind of diffu’ time al ess ous opin rrstivedin less Hiciones Ronndttgre does rat allow paiveke oben ship ol businesses | Thone, will be very Vece Lesincs operation vastivation, Then’ wi ll be very lis atevaln : ae ss operations svccesst lly from the higher adtontttes the ‘ 7 ie level stadf sinee thene will be veny less difononae im ‘the neha they gt: gp Olten negults im perentyt Commu nism uplifting ewnyere in a Soditly, but in neality Mt often daives, mast hrovsdlalds ints poverty . The gtnvdtone ts as to’ wanipulate. fon onnveort obbrgidls because only one evlity Was oversight over exenyticny Hae sooidy. One politicien cam tweake the poles and wight “have The goof laws $0 tok Thein thase of people neseive the most dompons din, wule atl mmaredahing everyone alse to work fon virtually nating . ee ght Beh Men, \out bois olden only the bene e essentials . a) weaving oe sos: Bien if a hosel! were t oxamulilt some leuk of wealth, That vollth bales the eommnity and net the Sami ly. Thene is vo precedent bon inhenttance onder tre Communisy esauge everrfrhing belongs Te the singulan pacity » stale, on government * Aid 5, of Mixed Economy: J Mest Demanding woes wilted economy dabiens the goods wi Senvices Mm je wast dercanding mankél. This helps the demand ard supply eyyetion dearde the price rblent tan any conta, authony As a) Beane ercnowses darnst have contre plnnens they en thaive natondly. an 2) Mixed _pable- prude settnt A wine Coomomy has bot h aipublie sed composed of apeninmet \watihitons, aude aprivele secon, msde up of privoke businesses. The private sedten maost ly ‘odes consonant goods gral industaies, and agnicoltont nun by privale oom panies, valeile Thy public seckon dacth twaludes poblic services Ue enongy and iter as well as prblie senvices Like “werbtter= vailitany ‘defense, Law, onloneemont ,.and ail dolveny- : ‘ | 5 aad) Ahene is both etenonie ‘and m uupitalist sy stone Eveny tndivided ooeupalion ot las ‘eloied - Similarly, egending _ production aud - 4) Freedom} Tna waned a oceuptlondl Prieedors ag found \as & Ueaty to horse AY every prodveen Gam rake vdeleisions consuraflion- trot oo | Alergy of eownie_qeingt Tntheniuel eomony, thane er all advorlages of economic plowing. eens coutnol egonomic fududions and te moet othen etomnie evils. Sassen ecrmmia ineualitioss capita evlanegs:: essmenie inmualities bot onden ruined cernamy » im egpelios can easily controlled Mmayvaine by the ebfonts ef getrnment cle otttlion Onda oft cient production’ Due te aonpettion betues 6) CoO tr | ak ganda and ple sechns, he lel of licienej rent wise AL fading of prododkin wink efficiently Me The Pepe | ah pd 2 Sovial Welfane' Under this syster the main prionity Vs. given ee . fa> gosta vellane Thnoogh ef effertive' eeonomie planning - The. private gettin -18. i. cordralled’ by ‘the grennhert, Production and! price pl pelisies, of private setter nd: den diteniaiie] ty: Atiove mastinue Social welfare . : ool | 8) Exonorie Bele Develophedts Unden this systen, bells Bovernwed asd privake gettin Join thein hands fon Ake Levelspimeit of Seti lense indrastnuctunes,, Meneovert, governs, geennment enatts any tel legislative wmoasunes to sade guard tie, be interests of the pan ond weakin Section of the society. Hendon 09 witeioalpa son countny, waned ceonony id right chide» 7 Sloe : 4 vy 1S a VW t } | TSpeey j : | apd wi. weep oud | : : Saxvyy drysuawno 2 PHY ye Std yous, = sasniduopyg - prado’ muy po yans * suoyd 709 pos Imes ~ saidoad .f2 suaquay -sosned inn aaed of yt wqpeped wide Suauna Apnpd | ce aun, fq watto Myo hela Uypas fo rae ML 4047 sarDpsept 1504, « byrnrad poune sesdya t aponad bacus y fe PM? poauinayfe Sucre power (é 749 FsFmg Sours yee. ty ’ Have payoqaysip) - | “hyyand ae pu) | 274M spyous rut ‘ 99 prowucranel ™ “pipes bey Papuado PUETA PMS temary sud “Pwo fa pound 4 -plomF paw pawte Ayoyornad | Pr prem mE 64 — suaisev9P onunova Sassaurseq 91909, Buy won ngrup sp” rere a 4 \ : 1504 HEFL SP : ‘ rPucOseU | yy {seme Fanwm {sou jou } Quos 4} pe vogaopeud f° Pr poor owe powcr? mL pun tnoud my uo pes Suspvy ™, r +™ Us, am 74K | uy u24sh GmiEMed) — yon eq wapshs eae ap hS 2 | muausTa 0 SLi | Peo Vouenny? veo 517) — pruouosa wo Si [f, — PDUMRDD Wr SL & emia : ‘ 4 saunyva) “Vos opoud i? cpapanne® sanpoy uslo Mh pe Faumued Pr | wus iuawuseg warenas wep idvo | =~ % : | = | way an wepeneg a wap) | ghuonsog Py 9A sun eae em MTEL : Cyptte / Syreote PHF suena prowionel wo Siswydey (a wage oy OMIA Prt 4sajoud “wegen bry huan i eo sides (ny *Lwippw i Jumped SF ADNSEM OF Bod fon |! Ay PHD IS\OPOP fon weno Of APE oun ae er Syproub) sapvengrng fy peu mwopaouy,“Farana’say A “PUP — yrucusag Uo} IaLyow' suoyopigsng 2 Saephme ficory (a) AP MOAIED JO HY MYL CD Pe amos $9 \uyueo herp we saydmg (ou) Japa prawns a op au UO Sesrydug (9) prPruunsonang (10 aN ado pao “OPvupes ON spppofbu jurmcursandh) MEM Paw vorpaspa S7sseNsnq WIE fo “ssauiddoy 12 fissuad ; ype S8utsaq, May prauuancy Ddrsunund apraud Puss ig — Mh END fpaan @ “epoch pre py) {* > SoSsdUI5NG .” “FOSSOMIG0Q ude yr “SSouisag pew ry i Dum? Zpumand IpmY Oh Jo dmsudUne onqYie IMFUEWHO On4% (yp, deysuanno aprvgsty — J W295 (b { “Spougraay, z “| - sasrudunpie| “Paerreywavp furaq | prruursrrdl fa, apis roonn os 51004 Fervoso)g “wad peur pabownn FMossebed | nae an} ay 3904 | auy sasmduayn? “OUT VOI. \woVAUUAASD -wwenpey te xP) tes ony aq) ope See ey WS Pa} as asudwipea ops yp |" Spponund Tmypoyursand7 Urey} vo | - uepas opaad ry synyueo ain oe Hawn pounuiol Sdumavy. hq pabown serine J promaboon & Peenvupway (z praryehig 2am sasruduapg ig Poway (€ Aarec0¥ POMyy wens us wsyUnUWwo? ide) Sauna. ' fe ee Grom uy smisop) | _ . para haduawa ty Paarnbeaau bss ayuel 4ourby won ous ee oe MIF yoy ay) 009g WA} 7 hs |p | are dhraqube Feoruaid wt 4 Seon 09») fob trv. MPRA, YO}, Y, ee aq) Pav saol ahrcorraree FUL PALM “pw vciadoao Urey} “EPA wanpodagno 59 0 Vaakednco ps Fo sone ov ef ia ane Fm sunny fd 27 A PEM ML 9 SE . a Fonpoud oy Papedxa os po Duy sasmduayna ops * SOKup wey frad 4 5e004 Yo ‘ : | “wuyg svaun : ony PMELD “stm , “Spyyoud | 9 peau UPL VeRVaS -Dyprsrub ay sustunams Fopruanak fuorov) MI Spud IY, HERO Pv Susysenm WaPHA Parag {2]%05 ¥ 40 unwas PIMA PUY Sujsarut 3 dzlfoud pay sucooudmupals yeu vu YYW tayoud i, Seo Paw Fuaroudeyngs, OF SPPLY 9 ' Speoucouby opmuy' ou) wos apm. We : | Pv fu, Suny, + howe rego sou “Spun 1 $uar DU | “Suen uod WU} “opr 990 aun JP PYM peomunrorob) Baowuro pro, rape oho Ua} yda0x9 205 prcy POULIN | DUO “suayru Suen] Pup 9 joupasd) spam vane layed MAL M4 Fejeupan paw amnnlion opp! opm pS prone ress peounurnl Yo42) (g, OUP SpPAUIA amas’ J “9PPDF aradmoy 5 sy Tae, fra ouvo7 PIM ry sasmuney | AEP OOS wsorepidyy | | SAuniwa) , “pend : Swapamg orn ar . 7 2 : j nue pauy (iF “vaucy MPON 4D GF. “PMT Psa ES PALO [Fr “spoyas ul saongeud ae yr} ‘ | soortyau iran fon Bangg, cuadde prope Fr 4 oe own” pape PAO, t sqol uo rasney 9) Os papeeee oe [WONDO Ter et’ uo ea “rust, sHEF ARS po eS uo “woibsrau doysrut op aah pusru fr TBaopaay Wound 05" yo! i = : | (moron gol, eu c Z 9 Sus Santis Jo aperup uo fromareel yp prepoud 4] pomurronng + fiscusad Mqwasso “ssoud ae a it Pabbn Suania) —— PaK of UMEMS Gi “yaaads fo. wepraUs fj = = 4 =) payee a [rayued |SpI AL PATH! Beep acap pao fds Suara mapsou pros (oj | °F i ie : furan 4 PTY semveaq bua voy 46009 fle ee Aypausp 51 ODIO fddosvare io Gyrus peau F- Pome | “spah Fyrom oy fuyyooo sug ou 45M ty “AH LONY) From fad "wo fiche Senadvaso Suow Frapisuca Sur Wqd 51 SANUS PHY spe] wes : 7 " | . 1 Fa eri de 4 vl Dowyo a Foon (g Bem Paks Reonon(e yo Ayer ore vie) le ynapnpoud he) | | “Saniewodul uaesot! “ “SOL pAoOML seo vey Po puverdu. avo 2 avy how yom} ; sup fa ayqed) SUA yup SuaURo 6a) “sosruduana Paueo, SANAWAS UO vay sabaet 40 uLuoa | Peerpau avo spud se = prouuuardl wt 4daowa Spec Syrronh “7onp oud pauuorerg* $d559M's04| Jomvveg Pury wee! “are arms) ue Tu use of ayonrud p79 pao A ywarnucea yuo | Feusquert i? 2UD Soaypadony (5 MMpROM, 9) 42) haan 5 Supa prt] oy 2 \puAAUY yoayy Al WENE WS Aruonvoy P™ny Ww FUND wsnrnos sme vides | galiniwos @® Wat ane the. foun’ phases ol Business ale] =) Oy-Bosmess aycle ane the periodie rises and falls Tut : ooeen n eomnomies oven time - Etnorigts look ata numben of business oyoleg . Prom seasonal.’ eyeles that ogeon. within a yean te cytles ‘that ‘oceun. | overt eveny 4@- CD yeans. _ Feo Eoomomists Joseph Schumpeten indortified the foun phases * of lory-denm business aye cyeles as Loom- Mecéession - depression~ Neooveny. eA] =e . 4) Booming fase An eerie | ae Pet ~ bem is jst hal it sounds Coa we Bey Noes Lke- business is booming! When!) none, Reoveny Ahend is am expansion of oulpd, “Trogh y income} employment, prices ean Jed vg probs thane is, algo igen the stadend of Using. Ms pera is Termed, ag kom) on pnesperity pases [ : The festune of prespenity anes 1 fay | : Sigh lol of otpl and tnade. ! Y High dettevel off aledad- elfctie demand. 4] High level ‘oll Tnoomé and employment 4] Rising yatenest rakes sHilsbs 14 5) Trflition. ¢ Lange bipansion of bank enedit. 7) Oven business optinism. Doe te full empleyrent of nosouness the level of! production ts maiimom and ardthene ig ante Im GNP. Due te high lewd of ceononie actirly, W causes a rise in prices and prolits. Tene is an upswing in the exaremia ality and caome economy Reaclys Ae Peak. ie Me \ 2] Recession’ Phase’! Recession js tun on mene Conseertive quantens ot “dale in the ADP. Duning 4 necescion peniod, the coonomia aotrities glow down When demand stante falling the ovengroduction’ aud futune investment , plans ane allen given vp Thene: 19) a Stendy decline in the ovlpit, tcome, employer pices land profits: The businessmen lode sadtlense and. become po pussvantios Th nedsces,wvestment The \ponks aud: the people ty to (get gustan ligitbly, 32 onedit asa vonluads. Fupision let business ‘slaps stoak mach Hels Ondons - ane cancelled and gtorle stadt’ ‘lesig hein jpbs The. inenense eg 0 Slarip deoline m Ineeme and aggnegade \n urenploynert favs demand. Crenerally nenession 2) depnession Phase t A depnession is govene necession, vsually >: accorqanied - dof Labion, yo anal Bethke The Yecdunes ot depression ane* NE teatunes OO SS 4) Fall a im volume jet ostest and tnadé.” Jef lasts we ghanh period. | $ J, YFalh im income and nige im vremplojments Sanofi | 4] Decline tm cong unplion and demand 4 Fall in \wtenest cute, - 5) Deflation. | 2 Heninadkion ef baw ened pe business pessimism. Tn depene depression, thene \s unden- vblizaion of ea and Soll in HNP . The aggneydle coowomie activity 15 J luest, cassiey 0 deelae Vn prices and profi 7 nti) dhe “wy corony Meaches 4s Trough 4) Gt Recoverty Phase ts A. Reeoveny, \9ceuns when the econo muy stabi Lees and tant bea gro -'Duniny the peniod of’ necovery, thenge ‘ane * eposion’ aud nise iwi e¢oreniia abliities. When demand teats: bing, “pro dudtion Yncheasess and this cavses an \ueneage i Investment, Thorne is: a) steady nise in ovlpil, Sneme, Cnploymens prides 'ia\ piel Ys! The businessmen gai condi dence and become aptind Yor This ikeneases Investments, Tis slimolation bd tvueg mont brings abovt ie thecoveny ot: Whe qonwrny The ‘bay experd cnedit, Lusiness Capansion _fakces place ond stro wanlel ane ottivded, Thane ip an iuondase TH oniplyrnent, ‘preduedin, Treome and aggneyate demand , prices aed’ prioltd sedate Usivy » and business suk, bapeds. Revived sleiely Thar pvewrually leads to an ecenornia bon, starting the ade" glk overt agin buamah bas node, @hhit ane the Dive types of onemployment 7 =) Te tenm unemployment nefong to a situdon where. aperson adively seanches ten ewplyment vitliv’ the prion foun weeks amr but 38 unable to find work. Uner ployment 1s omsidened ag ty be a Yeap Key weasune of the healt, of the eosromy . ‘Unenploymont; advensoly altedts the Usposcble intone of fawilies , erodes porohesing plover , dimcivishes enploy ee monale , aud nedvees cm Ceonom|s ostput. Thene ane maim 4 types of unemployment. MFrietional Unomploymety Frictional vnempbyment relens te these people ule have quit vonk because: th didnt Uke the fob, the boss et on! the wonky conditions and whe tayo! gt fond nen gob. Tt algs nefens to These. pesple whe ane orlening the Labor bonee fon tho Mngt time on ane ned uantig te the eben roe ‘afer signatioond Te anny» Thene vill alionys be some Anita! unemployment beoouse vit takes some time te fia a fast job , oy a ven Zeb- ny dy ‘4 2) Shrudtund: inengeynpsts Sndlind, vrewpbynent nefei vreriglymend caused by the nestroctuning , of Rinees on by & wig makole. between the slells of jb seckens and the negunmentts ol availeble bs. Tt Lappos chen The wages die Vere tak brings supply ad demand inte ane aleve ,, ES _ stability Tass ve of inp tao is usually permanend ; Mm nature . Even drought ae opeeilie Jobe aay be gone | 4 Frese, perle unenployed hon s{nectunal neagons CaM Sneaverd ‘ Band ston iw othene Idustries alten peed necorving othen skills. - ! It Trading avd aoqvining * 8)eueliedh unempbymentt Cydhical unemphymerct ooauns because ola nossssion on asinilan dowrtinn im the: busmess eye. Oy akieally unenpleyed pesple ane. id ff duets adeolne ow the demand Jon Tein prododt they ane also [etki ng fon jpb- Dering —neeesstons Hae demand tre —amms-arnl haoses ead stlens Thos ve sot unemployment 15 usually temporary) te uetone lt ythe rust seniivs. i q Soassnal unprploy ments Seasonal unddiplymert ocevng Where qerand fon labor vantes over The year, ag with the hanvecting a} enops. Seasonally unenployed people ane out of bend wonk aud aking fon a pb daring. the Mt

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