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: -Not all economies are organized in the same way. The three major ways they can be organized are as a market economy, a command economy, or a mixed economy. In a market economy, consumers and businesses decide what they want to produce and purchase in the marketplace.

Detailed explanation-3: -The economy is the social institution that organizes the production, distribution, and consumption of a society’s goods and services. It consists of three sectors: the primary sector, the secondary sector, and the tertiary sector. The two major economic systems in modern societies are capitalism and socialism.

Detailed explanation-4: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.