An economic system is an organisation for the purpose of satisfying human want through the utilisation of natural resources. according to w . w. loucks, "An economic system consists of those institution which are given people or Nation or group of nation has chosen or accepted as a means to which their resources are utilised for the satisfaction of human want". Institutions are a set of norms, rule of conduct or established ways of thinking such as private property money business corporation government Tax Planning etc economic system differ according to the nature of economic institution which the people choose for the satisfaction of their want.
features of economic system
- An economic system consists of certain institution which are device and adopted by the people or a nation for the satisfaction of human wants.
- an economic system always implies a group of people or a nation or a group of nation which organised production activities for the satisfaction of their want
- every economic system is confronted with the fundamental economic problem of multiplicity of and and scarce mean to satisfy the end resources available with an economic system are always short in relation to their demand is scarcity does not mean short supply in absolute thermal participate supply in relation to demand
- all production activities are directed towards the ultimate objective of the satisfaction of human want what do not consist only of the present want but the future want as well as economic system comprises the institutions that have the people group of people Nation and group of nature for the satisfaction of human want satisfaction of human want is ultimate objective of every economic system
- economic system is never stationary organisation since and economic system is made up of manmade institution its Nation keeps on changing with change in the Institutions it is a different thing that the strangers maybe very slow in some economic where is quick are violent in other one economic system give way to another economic system
- the Institutions which form and economic system cannot operate in isolation in spirit of the diverse nature of different institution there should be proper coordination between them institution are created destroyed molded remoulded by the people to make the economic system balance and coordinated.
