Economic Systems

Definition

Economic systems refer to the ways in which societies organize, produce, and distribute goods and services. They determine how resources are allocated and how economic activities are conducted within a society.

Related terms

Market Economy: A market economy is an economic system where decisions regarding production, distribution, and investments are based on supply and demand.

Command Economy: A command economy is an economic system where all aspects of production and distribution are controlled by a central government authority.

Mixed Economy: A mixed economy is an economic system that combines elements of both market and command economies. It allows for private ownership while also having government intervention in certain areas.