Micro Economics Presentation

Presentation Topic:

Economic System
Group members & IDs:
Program : BBA
• Fabiha Irshad (14054)
• Aneeqa Ali (14025)
• Ramsha Khan (14024)
• Marzia Zaidi (13888)
• Ayesha Naeem (14029)
• Sidra Qasim (14034)
What is economic system?
An economic system is a mechanism
which deals with the production,
distribution & consumption of goods &
services in a particular society and
comprises of people, institutions and their
relationships. It addresses problems like
allocation or scarcity of resources
Types of economic system?

There are four types of economic systems-

1)COMMAND (SOCIALISM) ECONOMY

2)MARKET (CAPITALISM) ECONOMY

3)ISLAMIC ECONOMY

4)MIXED ECONOMY
command economy:
A command economy is where a central government
makes all economic decisions. The government or a
collective owns the land and the means of production. It
does not rely on the laws of supply and demand that
operate in a market economy. 
command economy:
ADVANTAGES:
•Command economies can wholly transform societies to conform to
the government's vision. 
•The new administration nationalizes private companies.
• Its previous owners attend "re-education" classes. 
•Workers receive new jobs based on the government's assessment of
their skills. 

DISADVANTAGES:
•Command economies discourage innovation.
•Command economies struggle to produce the right exports at global
market prices.
• It's challenging for central planners to meet the needs of the
domestic market.  
MARKET economy:
A market economy is a system where the laws
of supply and demand direct the production of goods and
services. Supply includes natural resources, capital, and
labor. Demand includes purchases by consumers,
businesses, and the government.  
MARKET economy:
ADVANTAGES:
• Consumers are willing to pay the highest price for the things they
want the most. 
• Businesses will only create those things that return a profit.
• It ensures that the most desired goods and services are produced.

DISADVANTAGES:
• The human resources of the society may not be optimized.
•Their energies and skills go toward caretaking, not competing.  
•A society based on a pure market economy must decide whether it's in
its larger self-interest to care for the vulnerable.   
ISLAMIC economy:
The way of defining Islamic Economics is to qualify the term modern
or conventional economics with Islam. Islam is religion from Allah
SWT through prophet Muhammad SAW to mankind which means the
total way of Mankind life, that is what ever man does or is going to
do must be abided by the Islamic norms and values as well as laws
and other rules and regulations(shariah).  
Characteristics of Islamic Economy
Islamic economy:
ADVANTAGES:
•  It is the duty of the Islamic state that it should provide equal
chances of employment and economic development to all the people
irrespective of color and caste. 
•All the citizens, rich or poor should be equal before the eyes of law.
Courts should work honestly to provide justice to the people. 
•In replacement of Tax system Islam gives The concept of Zakat.
•It is also the duty of Islamic state that it should enforce the fair
distribution or wealth.
•It is the duty of the state to make full utilization of economic
resources for the economic welfare of the people.  
  
mixed economy:
A mixed economy is a system that combines characteristics
of market, command and traditional economies.   
mixed economy:
ADVANTAGES:
• It distributes goods and services to where they are most needed.
• It allows prices to measure supply and demand.
• It rewards the most efficient producers with the highest profit.

DISADVANTAGES:
• If the market has too much freedom, it can leave the less competitive
members of society without any government support.
•The government could protect the free market so much that it doesn’t
regulate enough.    
THANK

you!