ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems regulate the factors of production, including land, capital, labor, and physical resources.

Detailed explanation-2: -An economic system is any system of allocating scarce resources. Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed? There are two extremes of how these questions get answered.

Detailed explanation-3: -A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country’s individual citizens and businesses.

Detailed explanation-4: -However, in essence, economies work by distributing scarce resources among individuals and entities. A series of markets where goods and services are exchanged, facilitated by capital, combine to make an economy. These networks exist at a local, national and international level.