Processes

The function of the economic system is explained in terms of process. Process is made up of elements arranged in logical order. Information constitutes decision making and implementation results in the outcomes. So, there are four consecutive stages: information→ decision→ implementation→ outcome. The outcome may be of any kind; production growth, income distribution pattern, price change, accumulation of stock, change of unemployment rate, environmental gulf, or new inventions and explorations. Consequently, we can talk of the processes of production or distribution or price variation or unemployment rate etc. in an economic system.

Leave a Reply

Your email address will not be published. Required fields are marked *