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What are the types of economic systems?

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sweet107 | Student, College Freshman | (Level 2) Honors

Posted October 2, 2009 at 7:03 AM via web

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What are the types of economic systems?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 2, 2009 at 9:54 AM (Answer #1)

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Economists generally recognize three distinct types of economic system.  These are 1) command economies; 2) market economies and 3) traditional economies.  Each of these kinds of economies answers the three basic economic questions (What to produce, how to produce it, for whom to produce it) in different ways.

In a command economy, the government decides the answers to the three basic questions.  It decides what will be made, how they will be made, and who will get them.  Recently, pure command economies have usually been communist countries.  Good examples today would be North Korea and China.

In a market economy, consumers decide the answers to the three questions.  They do this by their choices of what to buy.  No one tells companies what to make -- they make whatever they think will sell.  If they choose wrong, they go out of business.  Most developed economies today are predominantly market economies.  The US, Japan and Germany are all market economies.

In a traditional economy, the three questions get answered by referring to tradition -- you make what has always been made, in the way it has always been made, etc.  There aren't really any countries whose whole economies are traditional.  The closest you could get to this would be Afghanistan or Bhutan -- places where there is little connection to the global economy.

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ninawilliams | Student, Grade 11 | (Level 1) Honors

Posted December 25, 2009 at 10:29 PM (Answer #2)

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There are three major types of economic system. They are:

1_Command economy

2_Market economy

3_Mixed economy

traditional economy is the forth one but it is not very important type of economy.

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parsenic | Student, Grade 9 | (Level 1) eNoter

Posted June 1, 2011 at 10:13 AM (Answer #3)

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guys there are actually 4 main types

1. command

2. mixed

3. market

4. traditional

you guys were only saying 3

 

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suvetha | Student, Undergraduate | (Level 1) Valedictorian

Posted April 16, 2012 at 5:54 AM (Answer #8)

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In a command economic system or planned economy, the government controls the economy. The state decides how to use and distribute resources. The government regulates prices and wages; it may even determine what sorts of work individuals do. Socialism is a type of command economic system. Historically, the government has assumed varying degrees of control over the economy in socialist countries. In some, only major industries have been subjected to government management; in others, the government has exercised far more extensive control over the economy.

The classic (failed) example of a command economy was the communist Soviet Union. The collapse of the communist bloc in the late 1980s led to the demise of many command economies around the world; Cuba continues to hold on to its planned economy even today.

In market economies, economic decisions are made by individuals. The unfettered interaction of individuals and companies in the marketplace determines how resources are allocated and goods are distributed. Individuals choose how to invest their personal resources—what training to pursue, what jobs to take, what goods or services to produce. And individuals decide what to consume. Within a pure market economy the government is entirely absent from economic affairs.

The United States in the late nineteenth century, at the height of the lassez-faire era, was about as close as we've seen to a pure market economy in modern practice.

A mixed economic system combines elements of the market and command economy. Many economic decisions are made in the market by individuals. But the government also plays a role in the allocation and distribution of resources.

The United States today, like most advanced nations, is a mixed economy. The eternal question for mixed economies is just what the right mix between the public and private sectors of the economy should be.

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patelmilia98 | Student, Grade 9 | (Level 1) Valedictorian

Posted October 12, 2011 at 8:04 AM (Answer #5)

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actually there are 4 tyoes of economic systems:

1.Traditional Economy

2.Market Economy

3.Command Economy

4.Mixed Economy

 

 

 

 

 

 

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bisheka | Student, Grade 10 | (Level 1) eNoter

Posted October 14, 2011 at 9:33 PM (Answer #6)

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actually an economic system is the way government choose to solve  the 3 economic problems:-

1.what to produce?(ex. weapons or more food to be produced)

2. how to produce?(ex.whether use labour intensive/capital intensive production)

3.whom to produce?(ex more goods  for youth /old people)

there  are 3 ways in which the 3problems could be solved

1.free/market economy

2.command/plannedeconomy

3.mixed economy(combination of both free market & command economy)

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suvetha | Student, Undergraduate | (Level 1) Valedictorian

Posted April 16, 2012 at 5:53 AM (Answer #7)

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Scarcity is the fundamental challenge confronting all individuals and nations. We all face limitations... so we all have to make choices. We can't always get what we want. How we deal with these limitations—that is, how we prioritize and allocate our limited income, time, and resources—is the basic economic challenge that has confronted individuals and nations throughout history.

But not every nation has addressed this challenge in the same way. Societies have developed different broad economic approaches to manage their resources. Economists generally recognize four basic types of economic systems—traditional, command, market, and mixed—but they don’t completely agree on the question of which system best addresses the challenge of scarcity.

A traditional economic system is—here's a shocker—shaped by tradition. The work that people do, the goods and services they provide, how they use and exchange resources… all tend to follow long-established patterns. These economic systems are not very dynamic—things don’t change very much. Standards of living are static; individuals don’t enjoy much financial or occupational mobility. But economic behaviors and relationships are predictable. You know what you are supposed to do, who you trade with, and what to expect from others.

In many traditional economies, community interests take precedence over the individual. Individuals may be expected to combine their efforts and share equally in the proceeds of their labor. In other traditional economies, some sort of private property is respected, but it is restrained by a strong set of obligations that individuals owe to their community.

Today you can find traditional economic systems at work among Australian aborigines and some isolated tribes in the Amazon. In the past, they could be found everywhere—in the feudal agrarian villages of medieval Europe, for example.

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fsabbagh | (Level 1) eNoter

Posted June 8, 2011 at 4:19 AM (Answer #9)

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1. command

2. mixed

3. market

4. traditional

 

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fateenghani | Student | (Level 1) eNoter

Posted September 17, 2011 at 2:14 PM (Answer #10)

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There are 4 types of economic systems. First, traditional, based on a barter economy. Production, exchange and distribution are based on customs and traditions. Second, free market economy. Third, command economy. Fourth, mixed economy. It's described by a combination of elements of pure capitalism and command economy (private and public enterprise).

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jssy11 | Student, Undergraduate | (Level 1) eNoter

Posted December 6, 2011 at 1:11 PM (Answer #11)

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There are 5 Economic systems:

1. Command Economy (Centralized economy)

2. Market Socialism (Decentralized economy)

3. Mixed Economy

4. Advanced Capitalist Market

5. Pure Market (Laissez faire; Let it be policy; Non-governmental intervention)

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nikasho0100 | Student, Grade 12 | (Level 1) Salutatorian

Posted March 27, 2012 at 12:03 AM (Answer #12)

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Free market economy also known as free enterprise/capitalist economy

Command economy also known as planned/centrally planned/communist economy

Mixed economy (combination of the above mentioned)

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yamaustine | Student, Undergraduate | (Level 1) eNoter

Posted May 23, 2012 at 7:16 PM (Answer #13)

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The Major type of economic system are basicially four

1. market economy

2. command economy

3. Traditional economy

4. mixed economy

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Ashley Kannan | Middle School Teacher | (Level 3) Distinguished Educator

Posted October 2, 2009 at 7:46 AM (Answer #14)

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I am going to presume that there is more to this question than is featured here.  I would suggest that outside of posting more of the question, it is always good to examine the role of government intervention in each type of economic system.  The lesser role of government, or a classically liberal form of government's relationship to economic orders, can be contrasted with a more state controlled economy, or one that is prone to government intervention.  I believe that the role of government is the primary distinction between each type of economic system and the examples can be illuminated to a greater extent in examining the role of government in such a system.

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avasbruce | Student, Undergraduate | (Level 1) Salutatorian

Posted May 27, 2011 at 7:42 PM (Answer #15)

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The main ones are command economy (communism) and free markets like what you have in the USA. But in reality, there are no 100% free markets and no 100% communist states. There is a mixture of the two. In China, for example, capitalism is prevalent and in the USA there are many rules and regulations which make it a bit like a communist state in certain aspects.

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chelangatjimmy | Student, Undergraduate | (Level 1) eNoter

Posted August 20, 2011 at 7:01 PM (Answer #16)

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They are four economic systems namely-; market economy traditional economy mixed economy commercial economy
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thisuserhasmadeabadusername | Student, Grade 10 | (Level 1) Valedictorian

Posted April 23, 2012 at 8:18 PM (Answer #17)

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1) Traditional Economies---Self-sufficient econmic system--mostly bartering

2) Free Enterprise--no gov't control

3) Command Economy---total gov't control

4) Mixed Economy---some gov't regulation

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zainablizzie | Student, Undergraduate | (Level 1) eNoter

Posted April 27, 2012 at 2:28 PM (Answer #18)

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basically,there are 3 main types of econmic systems:-

a) Command economy/centrally planned economy.

b) Free market economy.

c) Mixed economy

a command economy is an economy where government plays the important role. Eg, prices are fixed by the government.

a market economy is an economy where private individuals take their own decisions with less government intervation.Eg,prices are fixed by the forces of market-demand and supply.

a mixed economy is a combination of both the economies-both the government as well as the private individuals take decisions. Eg,prices are fixed by the forces of market-demand and supply as well as the government..


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minaxi30 | College Teacher | (Level 1) eNoter

Posted August 13, 2012 at 7:04 AM (Answer #21)

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There are three types of economics systems

1. Capitailist - This system works under private authority and its aim is to earn maximum profit. This is also known as market economy.Prices here are fixed by market forces.

2. Socialist- This system is governed by one central authority and its aim is social welfare. This is also termed as centrally planned economy. Prices here are fixed by central authority.

3. Mixed- This is a combination of capitailist and socialist system. Some work/ economic activities are governed by capitailist and some by socialist. 

E.g India works on Mixed system.

 

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shweta12patel | Student, Grade 10 | (Level 1) Salutatorian

Posted October 13, 2011 at 6:01 AM (Answer #22)

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market

command

traditional

 

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babarf | Student, Undergraduate | (Level 1) eNoter

Posted March 28, 2012 at 4:12 AM (Answer #24)

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socialism

comunism

mix

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rodzbutterfly16 | Student, Grade 10 | (Level 1) eNoter

Posted August 16, 2012 at 1:29 PM (Answer #25)

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there are three types of economic system in the world.the:

>capitalism

>socialism

>mixed economy

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sapnavaid | Student, Undergraduate | (Level 1) eNoter

Posted August 22, 2012 at 11:58 AM (Answer #36)

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there are three types of economic systems:

Market economy- it is that type of economy in which decisions are taken on the basis of  market forces(demand & supply).producers are free to produce. they will produce the product which is high in demand and will give maximum profit. and consumers are free to consume those goods and services which gives them maximum satisfaction.Market economy is also known as free economy i.e. without the intervention of government.

Centrally planned economy-  centrally planned economy is that type of economy which is under the control of government.it talks about the welfare of society.those goods and services are produced which are goodfor society.for ex.- eco friendly products.

Mixed economy- it is that type of economic system which exhibits the features of both market and centrally planned economy.here production takes place  in accordance to maximise the profit but along with this welfare of society is also considered.

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amicagt | eNotes Newbie

Posted November 1, 2012 at 11:21 AM (Answer #26)

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What is the classic ask?

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user2715870 | Student | (Level 1) eNoter

Posted January 24, 2013 at 8:22 AM (Answer #27)

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Scarcity is the fundamental challenge confronting all individuals and nations. We all face limitations... so we all have to make choices. We can't always get what we want. How we deal with these limitations—that is, how we prioritize and allocate our limited income, time, and resources—is the basic economic challenge that has confronted individuals and nations throughout history.

A traditional economic system is—here's a shocker—shaped by tradition. The work that people do, the goods and services they provide, how they use and exchange resources… all tend to follow long-established patterns. These economic systems are not very dynamic—things don’t change very much. Standards of living are static; individuals don’t enjoy much financial or occupational mobility. But economic behaviors and relationships are predictable. You know what you are supposed to do, who you trade with, and what to expect from others.

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jjrichardson | Student, College Freshman | (Level 1) Valedictorian

Posted August 19, 2012 at 1:57 AM (Answer #35)

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Some examples of economic systems include: feudalism, pure socialism, bureaucratic socialism, fascism and pure communism.

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hadjartahax | Student, Grade 9 | (Level 1) Salutatorian

Posted May 13, 2013 at 11:28 AM (Answer #39)

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1.Traditional Economy

2.Market Economy

3.Command Economy

4.Mixed Econom

xx

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nikasho0100 | Student, Grade 12 | (Level 1) Salutatorian

Posted January 8, 2014 at 10:46 AM (Answer #40)

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market,centrally planned,and mixed

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parama9000 | Student, Grade 11 | (Level 1) Valedictorian

Posted February 26, 2014 at 9:17 AM (Answer #41)

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Command

Market

Traditional

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parama9000 | Student, Grade 11 | (Level 1) Valedictorian

Posted February 26, 2014 at 9:20 AM (Answer #42)

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Alternatively,

Market

Mixed

Central

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Wiggin42 | Student, Grade 11 | (Level 2) Valedictorian

Posted June 27, 2014 at 3:56 PM (Answer #43)

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Traditional economy: When people made trade through barter system. 

Planned economy: When public sector plays a important role in the economy. (socialist countries like..china.

Market economy:  When private sector involvement is more than the public sector. capitalist countries like USA.

Mixed economy: When there is a right balance between the private and the public sectors. eg. India. where public sector acts according to the welfare of the society.

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arrellbelle | Student, College Sophomore | (Level 1) Valedictorian

Posted July 19, 2014 at 4:00 PM (Answer #44)

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Different types of economic systems include:

  • Traditional Economy System: A very clear-cut type of economic system. It is not dynamic and relies entirely upon the traditions of the people and the services they provide.
  • Planned Economy System: The government is the one that controls the economy. They are the ones that decided what products go in and out of their area of control.
  • Market Economies: The control is entirely upon the individuals themselves. They get to decide the flow of distribution for their goods.
  • Mixed Economic System: A combination of market and planned economies. Where the players are both the individuals and government.
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nishu2766 | High School Teacher | (Level 1) Honors

Posted August 19, 2014 at 11:26 AM (Answer #45)

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The world’s economic systems fall into one of four main categories: traditional economy, market economy, command economy and mixed economy;

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himanshuagarwal | Student, Undergraduate | (Level 1) eNoter

Posted August 18, 2012 at 6:41 PM (Answer #38)

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1.market economy  2.mixed economy 3.capitalistic economy

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