Phi 445 week 2 discussion 1
The characteristics of the relevant economic system will depend on the type of system being discussed—for example, a market economy, or a mixed economy. Generally speaking, regardless of the specific type, most economic systems share certain characteristics such as private ownership of property and production; voluntary exchange of goods and services; competition in markets to determine prices and outputs; incentives for entrepreneurs to innovate and take risks; specialization which allows for increased efficiency in production processes; an efficient allocation of resources which maximizes output while minimizing inputs (including waste); macroeconomic stability which enables long-term planning by firms, households and governments alike; openness to foreign trade and investment flows; protection of property rights including intellectual property; access to credit markets that allow businesses to grow beyond their own capital resources.