Week 1 Intro to Business and tech Essay

Submitted By brooklynlove
Words: 980
Pages: 4



There are several variations of the economic system in the world. The two main forms of the economic system are the free market system and the planning system. Some of the sub-economics systems are capitalism, communism and socialism. Each system is handled differently by the government, companies and its citizens of it respective country. For example, in the US, most of the businesses are privately owned with little or no ownership from the government. This is part of the reason why the US is considered to be capitalist. The economic system of a country can determine how its government and citizens handle varying situations. We will discuss with economic system might be best for handling an epic crisis, how a socialistic system could have been the best for dealing with the earthquake in Haiti and why the cost of heating our homes goes up at certain times of the year. The economic system best suited for handling an epic crisis might be socialism. Socialism is the ownership of resources primarily by the government but also involves the public. This economic system is best because the government will have already planned for anything to come. It services the needs of the people not for profit or control. If a flood or any other disaster where to happen, the citizens and the government would ensure the necessary aid and supply will be produced and distributed to all those in need. This is also a reason why the socialism economic system would have been best fit for the earthquake that hit Haiti. In 2010, a 7.0 magnitude earthquake struck Haiti and sent shockwaves through the country’s capital of Port-au-Prince followed by 2 aftershocks. Haiti’s buildings were poorly maintained and not up to standard, so when the earthquake hit, it all came crumbling down. The majority of the citizens on Haiti were affect by this devastation. If Haiti had a socialism economic system at the time, they would have been more equipped to deal with the disaster. The Haitian government put better protocols in place, maybe there may have been medical aid and food readily available. There might have been equipment in place to rescue people trapped under the debris and a mode of transportation to get citizens out of harm’s way. Over an estimate 230,000 people died due to this travesty (CNN, Feb 2014). Had its government taken care of the faulty buildings and have a better economic and financial system, they would have stood a better chance to handle this earthquake. These are all reasons why a socialist system in Haiti would have made a big difference. Events such as this are one of the impacts that can impact supply and demand in a country. As we know the cost of a product will fluctuate based on the demand and ability to supply the product. This notion is evident when it comes to heating our homes and business during the winter time. For the most part the price for gas and heat does not very by much but how much we pay for this product does vary by the season. During the spring and summer months we are charged less for heat because it is warmer outside so there is not a great demand for it. We might see our electric bill increase since we might have the fan and air conditioners on very frequent. But as the fall and winter months starts to come around, we are guaranteed to see a higher heating bill. There becomes more of a demand for it as we want to remain warm from the cold. The location you live in can also make a difference on the price you pay for heat. If you live in a state like North Dakota, the price you pay for your heat may be less…