THE NCUK INTERNATIONAL FOUNDATION YEAR
IFYEC003 Economics
Coursework
2024-25
Essay Title:
Economic systems refer to the mechanisms and structures that societies use to allocate resources, produce goods and services, and distribute wealth among their members.
These systems provide the framework for how an economy functions, shaping the lives of individuals and societies as a whole.
Economists argue that understanding economic systems is vital because they profoundly influence the prosperity, well-being, and opportunities available to people. It plays a critical role in policy-making, business strategy, and even individual financial decisions.
Prominent historical examples of planned economic systems include the former Soviet Union and Korea, where the government played a dominant role in economic planning, whilst prominent examples of free market economic systems include the United States and many western European countries. On the other hand, examples of mixed economies include Nordic countries like Sweden, Denmark, and Canada, where there’s a balance between public and private sectors.
A comparative analysis reveals large differences in resource allocation, wealth distribution, and government involvement across these economic systems. Each system brings its unique set of advantages and challenges and as the global landscape continues to evolve, so too will these economic systems, impacting the lives of billions across the globe.
Resources are viewed identically in all economic systems. No matter the economic system, the production of goods is essential to the long-term survival of individuals and the wider community.
An interesting piece of research conducted by the New Economics Foundation discovered that in 2021 Vanuatu and Sweden were the top two countries in the world in their Happy Planet Index – an index designed to measure long term economic efficiency - despite being very different countries in different continents with different economic systems.
Evaluate the extent to which you agree with the view that resource allocation can only ever be maximised when an economy moves from a planned economic system to a free market economic system. 100 marks
To access the full mark range/ you should be able to
• demonstrate clear knowledge and understanding of the different types of economic systems
• clearly apply your knowledge to issues surrounding the choice of economic system and the ways in which these can influence resource allocation and the welfare of citizens.
• provide relevant and precise economic analysis of the relative merits of different economic systems. You may wish to consider the relative strengths and weaknesses of different economic systems/ and provide real world examples to support your arguments
• provide an evaluative judgement on whether resource allocation can only ever be maximised when an economy moves from a planned economic system to a free market economic system
• demonstrate effective study skills in the research and presentation of your work.