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  Economic Systems

Economic Systems:

An economic system is a manner of answering such fundamental questions. Various economic systems answer the above questions in a different way. An economic system refers to how the different economic elements will resolve the central troubles of an economy: what, how and for whom to generate. It refers to the production and distribution of goods and services in which economic activity occurs. It refers to the manner different economic elements, individual workers and managers, productive organization like factories or firms and government agencies are linked altogether to form an organic total.

Economic system comprises of different individuals and their institutions such as banking institutions, educational institutions & economic institutions. The most common economic systems are:

1. Traditional Economy
2. Capitalist Economy
3. Socialist Economy
4. Mixed Economy

 

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