2.1 liberal economic system (Free Economy) or capitalism (Capitalism) As an economic system that is privately owned by production factors. There is freedom in economic activities to the fullest by the Government not to intervene or to perform an economic activity. The State acting in a facilitating and organizing the various public and private, it is therefore a fundamental solution to various economic decisions based on price or market system helps to decide what to produce, how this whole production rates determine how much consumers are or how many manufacturers are at a particular price, the profit is the motivation of production, thus making this economy with very high prices and competition is free. This is because the price is determined by supply and demand of the market. English is the first country that used this system because there are business and industry prosperity before. British people's own career trade tradition, using the resources both in and outside the country with the colonies around the world, and under the economic system in this manner, a person has full freedom to hold private property. There is freedom to choose consumption decisions in solving the economic base will be made through a competitive market system. Where there is a market price indicates the demand of society. An important principle of the liberal economic system. In a liberal system has enough important principles are as follows (Sukhothai thammathirat Open University liberal arts disciplines 2538 (1995): 57)1) holding the economy resources liberalism or capitalism is allowed to accept proprietary matters or private business unit owns the property and production factors. Title holders in these matters has provided freedom of action of any of their estate to it. 2 freedom of all enterprises) to which he and a group of people belonging to different organizations or business units, with freedom for any practitioner to act on his or her property and production factors independently without control from the.3) profit incentive is a liberal economic system margin, which is the portion of the increased benefit from the investment, it is important to motivate manufacturers to produce business unit focusing on bringing new techniques to help reduce the cost of production used in the operation to obtain the maximum profit. Best consumer selection criteria will be based on consumer goods and services that will bring maximum satisfaction. With the smallest settlement by comparing their own requirements from those items of type khang. 4) mechanisms of the liberal economic system, price, price is a fundamental issue for decision is whether the decision makers will produce much of anything based on the trend of demand for various types of purchases, payments, and view product price point that consumers are willing to pay to buy. If consumers want more, what kind of products to use money to buy that item. Although prices are high, they will also buy. When is the display manufacturers will cut production capacity costs of that type because they are sure to sell, of course. How to see the trends in prices and consumer behaviour itself determines that a manufacturer decide to produce anything. How much dose rates in the free economy, it indicates and controls work within the economic system said that until prices represent consumers. Pointer to a specialized manufacturer of goods that consumers want.5. role of the economic system, State) liberal States will not play a role in economic growth. The State acts only in justice and defense By the Government is a party and provide private facilities, or suppliers of goods and services, such as Adam Smith and put some functions has been defined as a State. As follows:To prevent the country from being invaded by using any formats that are both inside and outside the country. The protection of the family, citizens have been injustice or oppression he from the action of citizens together.The utility was created to facilitate the people.The advantages of the economic system, capitalism is as follows: b. motivation at work because of already made its own fishing income. because each manufacturer competing to sell goods and services to the most. Need to improve production techniques always makes the quality of jobs and the quality of the product improved. product manufacturers have the liberty to decide what to produce and how much quantity produced production? consumers with the opportunity to select a consumer of goods and services in the most fair prices.Disadvantages of traditional economic systems, capitalism There are many flaws. make people's income distribution inequality, because the person in society, there are different property does not equal. Someone who has a lot of property shall have the advantage that there is less money because the property as a source of income. There are surely many asset that people seek more revenue from their property. The opportunity to create individual income inequalities in society, it is very. If someone has a lot of property known as "capitalists" as a person lacking ethics and likely backer is abusive, others have very often lack of ethics and economic benefits into consideration, but it is very important to gain and resulted in pressure and.
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