Systems

There are many types of systems. These systems are broken up into a variety of categories. “Systems are classified in different ways: Physical or Abstract systems, Open or Closed systems, 'Man-made' Information systems Formal Information systems, Informal Information systems, Computer Based Information systems.”(1) Man-made systems are created by humans and have a purpose. This purpose could be any function or just to organize. Naturally occurring systems may not have a clear purpose but are still considered a system. (1)

 One type of system that everyone is familiar with is an economic system. Economic systems are used in the distribution of scarce resources.  There are a variety of economic systems ranging from a completely free market economy to communism. Our current economic system in the United States is a closer to the free market system on the economic spectrum. “An economic system is composed of people, institutions, rules, and relationships.”(2) Today the various economic systems of individual countries work to together in a much larger global economy. The global economic system allows the trade among willing nations and the continued creation of wealth. (2)

 As mentioned earlier economic systems vary and there are no two countries with exactly the same economic system. The systems may vary even within the country itself. An example of varying systems being used within one nation would be China, the cities operate in a semi free market while the rural country is strictly communist. (3)

 The United States is considered a free market economic system. A free market system allows the private ownership of property as opposed to a communist system that does not allow private ownership. A free market system allows for open trade with limited government interference. The free market system is also known as capitalism. Price are determined by supply and demand, so the

Market will always work itself out and the government’s intervention will only postpone that. (4)

1. “Systems.” http://en.wikipedia.org/wiki/System#Types_of_systems

2. “Economic Systems.” http://en.wikipedia.org/wiki/Economic_system

3. “Economy of the People’s Republic of China.” http://en.wikipedia.org/wiki/Economy_of_the_People%27s_Republic_of_China

4. “Free Market.” http://en.wikipedia.org/wiki/Free_market_system