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The role of the economic system in financing of education and absorbing the educated manpower

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Economic System:
An economic system is the structure of production, allocation of economic inputs,
distribution of economic outputs, and consumption of goods and services in an economy. It is a set of institutions and their social relations. Alternatively, it is the set of principles by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive resources.
Examples of contemporary economic systems include capitalist system, communist system, socialist system and mixed economy.

1. Capitalist Economic System: A free market is a market without economic intervention and regulation
by government except to enforce ownership and contracts. It is the opposite of a controlled market,
where the government regulates how the means of production, goods, and services are used, priced, or
distributed. This is the contemporary use of the term "free market" by economists and in popular culture;
the term has had other uses historically. A free-market economy is an economy where all markets within
it are free. This requires protection of property rights, but no coercive regulation, no coercive
subsidization, no coercive government-imposed monopolistic monetary system, and no coercive
governmental monopolies. Capitalism is a way of organising economic relations based on private
control over the means of production, including farms, factories and knowledge.
2. Communist Economic System: Planned economy (or command economy) is an economic system in
which the state or workers' councils manage the economy. It is an economic system in which the central
government makes all decisions on the production and consumption of goods and services. Its most
extensive form is referred to as a command economy, centrally planned economy, or command and
control economy. In such economies, central economic planning by the state or government controls all
major sectors of the economy and formulates all decisions about the use of resources and the distribution of output. Planners decide what should be produced and direct lower-level enterprises to produce those goods in accordance with national and social objectives.
3. Socialist Economic System: A socialist economy is based upon the principle of welfare of the people.
As opposed to capitalism, a socialist economic system is based upon the principle that economic
activities should be undertaken so that people would be able to use goods produced thereof, instead of
employing the production for profit. Many economic philosophers had previously refused to believe in
this system as a legitimate one, but countries with socialist economic system, have proved the
importance and success of the element of socialism in the governance of any economy. This has
eventually led to the evolution of mixed economies.
4. Mixed Economic System: A mixed economy is an economic system that includes a variety of private
and government control, or a mixture of capitalism and socialism. There is not one single definition for a mixed economy, but relevant aspects include: a degree of private economic freedom (including privately
owned industry) intermingled with centralized economic planning and government regulation (which
may include regulation of the market for environmental concerns social welfare or efficiency, or state
ownership and management of some of the means of production for national or social objectives).

raphael answered the question on August 4, 2021 at 07:01

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