Attempt to allocate resources effectively economics essay

Sloman and Stucliffe, In case of supply, if the cost of oil increases which causes their total cost of one unit to rise, they may reduce their production.

This does not mean that the government is never involved when a situation calls. Administrative science quarterly, 37 1. Mixed economies Comprises of both the state and private entities. Hence this mix brings in both the markets and government as the custodians of resource allocation.

Contrasting that with a command economy, this type of a system has its factors of production controlled by the government. This economy can utilize itself to come up with mega projects and spur innovation in areas that the government wants Harrison, This creates a scenario of a mixed economy.

The attitude towards work or the internal culture of the organisation for example, the attitude of employees towards a diverse organisational environment.

The best economies are those which utilize all the discussed economic systems above, apart from the transitional economy which is solely for countries that are shifting.

Hence it gets involved in a transitional economy. They may also try to cover for its losses of UK from other countries. This happens through the use of taxes and regulations.

For example, if Cadbury has to decide which type of chocolate to produce, it will look for the product where demand is high and divert majority resources in producing that particular chocolate. The short run period is where at least one factor of production is fixed; whereas in the long run all can vary, thus affects the decision making or response of firms, for example what machinery to use.

Hence it is a free enterprise regime where there is a minor possibility of government intervention. Impact of the monetary policy on: Pricing and output decisions are also affected by the responsiveness of the quantity of demand of the product to changes in price, known as the elasticity of demand and the responsiveness of the supply as well Lowson, Consumer expectations and actions: It falls close to a mixed economy but outside the maturity of a mixed economy.

Adjustment of tax rates causing considerable differences in VAT taxes among member states. The cultural environment on the other hand refers to the influence on the behavior of the organization by the cultural factors of the environment it operates in, which are beyond the control of the organization.

Explain How Economic Systems Attempt to Allocate and Make Effective Use of Resources.

The competition policy in the UK economy is currently based on the Competition ActEnterprise BillOffice of Fair Trading OFT and the Competition Commission CC as well as other regulatory mechanisms including the Companies Actthe regional policy, industrial policy, enterprise strategy, training and skills policy and so on Sloman and Stucliffe, Ownership and creation of means of production is entirely left to the system.

For example, an organisation providing bus travel services might tend to charge higher prices at the peak time of the demand for buses, as people will consume the service to get to their destinations, no matter what the price is. Impact of the fiscal policy on: Though it has the capacity to make economies grow fast and large, it is normally a case of survival for those who are fit Harrison, For example, the Apple Company might determine the expectations of its consumers and innovate a product accordingly.

Hence it is characterized by dropping of trade barriers and privatizations. How to produce will depend on the most profitable goods and services in the market however, governments may intervene to determine where to divert resources.This paper will attempt to explore how individuals with each of these intelligences can effectively communicate within a group environment, and will also explore the different personality types and how individuals with these personality types can effectively communicate and contribute to any team or group.

Demand and Supply of the product: The key point that answers the questions of what, how and for whom to produce depends on the demand and supply in the market; leads to allocation of scare resources in a profitable manner (Lowson, ). Disclaimer: This essay has been submitted by a student.

This is not an example of the work written by our professional essay writers. This is not an example of the work written by our professional essay writers.

Effective resource allocation among the various economic systems Essay

Apr 25,  · Explain how economic systems attempt to allocate resources effectively Assess the impact of fiscal and monetary policy on business organisations and their activities. Evaluate the impact of competition policy and other regulatory mechanisms on. Explain How Economic Systems Attempt to Allocate and Make Effective Use of Resources.

Explain How Economic Systems Attempt to Allocate and Make Effective Use of Resources.

Explain how economic systems attempt to allocate resources effectively

Also you can read essay about "What resources are we running out of". 2.a Explain how economic systems attempt to allocate and make effective use of resources. We have 3 types of economy system: Market economy - Command economy - Mixed economy * Market economy: based on private companies, a lot of decisions based on market mechanism.

In nature, market economy is decentralized, flexible, practice and can be change.

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Attempt to allocate resources effectively economics essay
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