Economic system

Perkonomian system is a system used by a country to allocate its resources to both individuals and organizations in the country. The fundamental difference between an economic system with other economic systems is how to manage the system of production factors. In some systems, an individual may have all the factors of production. While in other systems, all of these factors on hold by the government. Most of the world's economic system is between these two extreme systems.

In addition to factors of production, economic systems can also be distinguished from the way these systems regulate the production and allocation. A planned economy (planned economies) gives the government the right to regulate the factors of production and allocation of production. While the market economy (market economies), the one who set the market factors of production and allocation of goods and services through supply and demand.
Planned economy

There are two main forms of planned economy, namely communism and socialism. As a form of thought Karl Marx, communism is a system that requires the government to have and use all the factors of production. However, he continued, government ownership of production factors are only temporary; When the economy is considered to have mature society, the government must give rights to the factors of production to the workers.

The Soviet Union and many other Eastern European countries use this economic system until the end of the 20th century. But this time, only Cuba, North Korea, Vietnam, and China are using this system. The countries that did not fully regulate the production factors. China, for example, began to relax regulations and allow private companies to control their own production factors.
[edit] Market Economy

Market economy depends on capitalism and liberalism to create an environment where producers and consumers free to sell and buy what they want (within certain limits). As a result, goods produced and the prevailing price is determined by the demand-supply mechanism.
[edit] mixed market economy

Mixed market economy or a mixed market economies is a combination of a market economic system and planned. According to Griffin, there is no any single country in this world who actually carry out the market economy or planned, even countries like the United States. Although known to be very free, the United States government issued several regulations remain that limit economic activity. For example the prohibition to sell certain items to minors, controlling advertising (advertising), and others. Similarly, the state-planned economy countries. Currently, many countries of the Eastern Bloc has privatized firms, the government changes the status to private companies.