Types of economic systems

with the production, distribution and consumption of goods and services

in a particular society. The economic system is composed of people, institutions and their relationships to resources, such as the convention of property. It addresses the problems of economics, like the allocation and scarcity of resources.

Planned economy
Traditional economy
Participatory economics

or a free enterprise economy) is an economic system in

which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system. In a market economy, businesses and consumers decide of their own volition what they will purchase and produce. Technically this means that the producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities.

the world today are mixed economies which combine varying degrees

of market and command economy traits. For example, in the United States there are more market economy traits than in Western European countries.

mix of economic systems. It is usually defined as an

economy that contains both private-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market economy and command economy.