Introduction to sociology / Economy / SUBIN KIM

1. SUMMARY

  The economy is method to use the environment in order to meet their environmental needs and involves the production, exchange, distribution and consumption of goods and services. Thus, when someone produces and distributes goods and services, the economy becomes more economical and the more economical the economy becomes, the more complex the economy is. The ancient economy was based on agriculture and was mainly made up of exchanges or barter by social relations. With the advent of Adam Smith, the price of the product was definited by product's competitiveness, demand, and labor.

  Capitalism talks about the relationship between labor, goods, technology, and capital. History is deep in history until these capitalism is named. How capitalism is achieved depends on the combination of goods, currency, labor, manufacturing, and production. Therefore, individuals provide money and labor as workers and labor, and company determine what to produce for efficiency purposes. Ultimately, the price is determined by the supply and demand, and this demand and supply affect prices.

  Capitalism is often criticized for being controlled through public policy because it is irrational and leads to inconsistency by socialists. But capitalism is still considered reasonable because it lead to economic growth and overall living standards. Socialism is an equal approach to all individual resources. It says that most socialists should control capital. The Gini coefficient is a measure of the income distribution of the national population. The Gini coefficient is used as a measure of wealth inequality.

 

2. what was interesting

 The informal economy is said to be not included in the GNP as an economic activity that is not taxable or not monitoring by the government. However, it was interesting to say that all economic systems contain informal economies. I wondered if it would be an example of an informal economy that would lead to cash in when selling goods in small stores or non-registering private tutoring.

 

3. Discussion

  I just wonder if there is a genuine capitalistic state where the government does not intervene at all.