Apart from affecting other sectors, an economic system is also impacted by social, cultural and geographical forces along with the regular inputs of land, labor, and capital. Traditionally, economic systems were based on the imperative models of capitalism socialism and communism but recent political and economic developments across the world have caused dynamic changes in this area. The modern approach to comparing economic systems is more expansive and relates to their multidimensional attributes rather than studying the limited characteristics of ownership and means of production as with the traditional method.

The main reasons behind this new approach to studying economic systems are the immense

Therefore, one must determine what modes of comparison to use in order to study the general outcomes of economic systems. However, it is more imperative that I compare economic outcomes to economic systems to evaluate the relationship between the two. Organization in economic systems refers to the arrangements through which decisions are made. Hence in a hierarchical system, the principal would determine how to achieve economic growth and efficiency. In an association however, the individuals would contribute towards decreasing instability and increasing viability and in general the decision- making process.

Hence it is clear that demographics and social beliefs influence economic output, which is an important aspect of economic systems but other core ideologies such as the caste system or intervention of the Supreme Being also have direct impacts on economic systems as examined by four social philosophies, liberal rationalism, Marxist Leninism, rightist and the Christian realist. These philosophies combine human nature with history in distinct methods to provide plausible explanations for features of economic systems.

Therefore an economic system is a mere block in the huge societal structure and it is evident that each block has to be supported by other components for its survival. A system of checks and balances has to exist at some level between the facets of society for there to be an established order. For example, economic systems feed of cultural values, which in turn are influenced by location and history and this relationship can be continued until all aspects of society are included thus reestablishing the close knit structure within mega systems that create communities.

It is clear that there is a constant interaction between the different structures and systems that build up society. As a result of being educated, one might choose to participate in economic activities or help make political decisions and in turn governments make educational reforms based on economic standings. Hence the interrelations between the different facets of society are vital to its functioning. Through this paper, I have attempted to trace the ties between economic systems and other crucial components of community using well-known social philosophies.

Economic outcomes are functions of economic systems, cultural, historical, environmental and political factors. As seen in the previous papers, the difficulty in defining and classifying economic systems is great. Hence, defining economic outcomes based on vague entities seems to be an even more complicated task. However it is clear that the main objective in studying the outcomes of various economic systems is to find the most efficient one. The main focus of this paper however is to observe the relationship between economic systems and economic outcomes.

Japan for example is well known for its high standard in work ethics. A definite hierarchy exists within working areas thus making the executive more powerful. Work in Japan is a priority in comparison to family or social life. In fact, communities are created based on one’s job. Employees of particular firms usually spend time with each other to enhance work and communal ethics. Even though, Japan stresses on establishing communities based on occupation, it is a highly individualized culture in comparison to many African and Latin American countries. In the latter countries, communal work is essential and group benefits are considered more important than that of individuals.

Hence, organizations are needed to correct these problems and the two extreme types of organizations are hierarchies and associations. In the first type of organization, superiors make decisions and issue them to subordinates while in the second type an egalitarian system exists where individuals make their own decisions. Organizations often face the principal-agent problem in which the first is the controlling figure and t

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