Mircoeconomics Essay

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ECONOMICS SEPTEMBER 2012 Intake Economics Coursework Summative Assignment Date Assignment Released: Tuesday 26 February 2013 Assignment Due In: By 3PM Thursday 21 March 2013 Name: Nguyen Tran Khanh Group: FB2D 1. a, i: What is another name for a collectivist economy? Another name for a collectivist economy is command economy. Command economy is an economy where authorities decide all economic decisions. Ii: Give another two examples of collectivist economies Cuba and Soviet Union (1992-1991) are two examples of collectivist economies. They are closed to the perfect collectivist economies (40 words) B, What type of economic system operates in South Korea? Explain your answer The economic system of South Korean that operates is mixed economy. Firstly, it is valuable to figure out what is meant by mixed economy. Mixed economy is an economy where economic decisions making are taken by both private sector and public sector. According to Eungi and Sung (2003), “In South Korea, as with other NIEs, the state’s effective socio- economic strategies combined with political stability have played a more decisive role than culture itself in promoting industrialization. Indeed, industrialization in South Korea occurred only after the country became more political stable and adopted effective economic strategies”. Apart from industrialization, Korean labor forces benefit from the Korean government policy such as welfare payments. Korean republic wants to achieve high growth with low and stable inflation rate through use of taxed and government expenditure. Furthermore, the pattern of production and consumption are existed by using legislation to avoid producing unsafely products. (150 words) C, Using the table in figure 1 compare the economic performance of South and North Korea To begin with GDP-real growth rate, visually, during

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