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Economic Systems

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Which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why? (9 points)
Describe and explain why a socialist system might be the best in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January 2010. (9 points)
Use the laws of supply and demand to explain why the cost to heat our homes and businesses goes up in the winter time. Be sure to explain your answer fully (9 points)
Include APA style in-text citations, as well as a reference section. (3 points)

Economic system is the policies that define a society’s particular economic structure. The rules by which a society allocates economic resources.
Communism
* State ownership of all major productive resources * Absence of economic classes * Few opportunities for entrepreneurship
Socialism
* State ownership of certain productive resources * Managed efforts to minimize dramatic differences between economic classes * Opportunities for entrepreneurship, with varying degrees of restrictions
Capitalism
* Private ownership of most productive resources * Few efforts to minimize differences between economic classes * Government policies actively support entrepreneurship
All economic systems are based on certain fundamental principles about how a country should allocate its resources to satisfy the needs of its citizens.
Most modern economies exhibit a combination of capitalism. In practice, no economy is really free. Local, state, national, and even international government such as European Community intervene in the economy to accomplish goals that leaders deem socially and economically desirable.
The practice of limited intervention is characteristic of a mixed economy or mixed capitalism.
Planned Systems
This is communism where the

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