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 that organises free interactions of individuals following their respective economic pursuits. The prices of the goods and services are collectively consented upon by the purchasers and sellers.
Fundamental issues can be 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 organised manner by some central powers like the government.
Also Check: Economic and Non-Economic Activities
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 the customers and entities.
A market economy can be defined as an economic structure in which the economic decisions and the pricing policy of goods and services are led absolutely by the comprehensive interactions of a nation’s individual citizens and entities. There is a meagre government involvement or central planning involved
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