What is Organisation of Economic Activities?
Organisation of Economic Activities is defined as – ‘All the economic pursuits are organised through the market. A market is an organisation which organises free interaction of individuals following their respective economic pursuits. Price of the goods and services is collectively consented upon by the purchasers and sellers.’
Fundamental issues can be either resolved in the organisation of Economic Activities by a free interaction of the individuals chasing their own purposes as it is done in the market or in an organized manner by some central power like the government.
Types of Organisation of Economic Activities
- Centrally Planned Economy
- Market Economy
Centrally Planned Economy
A centrally planned economy can be defined as – ‘An economic structure in which the government or state takes economic resolutions or decisions instead of these decisions being taken by the interaction between customers and entities.’
A market economy can be defined as – ‘An economic structure in which economic decisions and the pricing policy of goods and services are leaded absolutely by the comprehensive interactions of a nation’s individual citizens and entities. There is meagre government involvement or central organising.’
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