The first feature of the communist economic system is the abolition of the private ownership of means of production. In this system, an individual can own nothing except necessaries of life. No one can run private business.
The advantages and merits concerning to the financial matters of the Muslims are called economic advantages. Following are the economic advantages of zakat or Economic benefits of zakat.
Following are the main characteristics of socialism. Public ownership Planned economy, Classes of society, State is responsible for basic necessities of life, Equal opportunity to all, Non-existence of competition and limited choice of consumer products, Pricing mechanism
External economies of scale are not related with the ability, skill, management, education and experience neither these are linked with a specific business. All the businesses enjoy these economies equally. These economies arise as a result of the expansion of the industry as a whole
"Internal economies are those economies in production which occur to the firm itself when it expands its output or enlarge its scale of production".
Market economy and planned economy are two different economy systems. An economic system is a set of institutional arrangements whose function is to employ most efficient scarce resources to meet the ends of society. Both the economic systems have to answer the basic questions of economy i.e. what to produce,
Every economy has to go through certain functions or it would face problems economically and this is the obligatory duty of the government to see that the economy runs as smoothly possible. Following are the functions of economic systems or problems of economic system