What are the goals of economic sytems?

Answer 1

Usually to make sure the rich keep most of their money and the middle-class pays most of the taxes.

Answer 2

It's not exactly clear what you mean by economic systems. Typically, the goal of any one personality in an economic system is to have as much stuff as possible to maximize one's utility. When people live near each other in close proximity, they will naturally aquire things that they each want - for instance, A might have land naturally suited to growing crops, whereas B has land naturally more suited to raising animals. If A wants a steak, he will have to persuade B to give him some meat - either through force or, more preferably, through trade. Thus A and B make an exchange and both become better off. Thus begins the economic system as I assume you would mean it - a spontaneous system whereby a network of exchange is created. Since the system itelf has no personality, it's rather meaningless to ask what its goal is. However, the goal of each of the collection of autonomous actors is to maximize his own utility/happiness. So, the goal of the "system" should be, in essence, to maximize the total utility of the goods in the system, which economists call efficiency. Suppose one person's utility can be raised without lowering anyone else's utility in the process - such a system is inefficient, and can become more efficient by making that step.

Efficiency is an important goal, but of course not the only one. For instance, suppose A is a totalitarian dictator over B, C, D, etc., and he wields force to maintain this status. Suppose further that A has 90% of the goods in the system and the rest share the 10%. Such a system is efficient because B, C, and D can be made better off only by taking from A, however this doesn't appear to be the best allocation of goods because A has far more than his "share." So at times and in certain situations, it is possible to have a more desirable allocation of goods which ultimately works against efficiency. Typically, such situations are when an actor has used force to obtain goods from others rather than coercion. Generally though, an efficient allocation of scarce resources should be in everyone's best interest because it makes one person better off without harming anyone else.

Answer 3

Control and stabilize the distribution of goods and services. Growth ( employment and public goods for example). If you are a capitalist economic system you ant to ensure competition and profit.
If you are a socialist type of economy your government owns some of the goods and services therefore the government will gain profit. An example is Mexico a socio-capitalistic economy in which the telephone and gas company are owned by the government. Out there you do not have several gas companies like here.
A communist economy looks for an equal distribution of goods, services, and profits that totally eliminates competition. No communist economy has yet offered a better living for its citizens. Take for example a pie you cut it in equal shares and you distribute these regardless of who worked the hardest to get the share. A doctor or a farmer are entitled to the same benefit.

Answer 4

Start with the idea there are limited resources on the earth. There is only so much of a certain thing.... oil, houses, what ever. An economic system decides who, in what quantities, will get these limited resources. In a capitalist system it is the person with the most amount of money that gets the limited resource. In other systems, distribution of limited resources is done by the needs of the individual by the state. Both systems have their + and - and finding middle ground is what I think we try to do the the U.S.

Answer 5

Simply put, the main goals of all economic systems is to:

1) Efficiently allocate resources and
2) Maximize economic profit.

Now within the various systems, there are some other goals, but these are two that are givens among all.

Answer 6

Two main Western economic systems is :

1. Monetary
2. Keynesian.

Monetarists focus their economic efforts on the Money Supply. "Loose Money" is when prices are high (like real estate) and moniorests will keep the interest rate low when prices are high. "Tight Money" is when prices drop and are low prompting the interest rate to rise. There is an "INVERSE" relationship between prices and interest rates.

Keynesian's focus their economic efforts on unemployment and government spending. Consumer spending, and unemployment figures are the bell & whistles that they sing.

Answer 7

The textbook definition is to maximize potential gaines made from trade and other decisions. To encourage development that allows a society to become better off over the long term.

Answer 8

He who has the most toys when the buzzer sounds , wins !

Answer 9

To stop inflation.