ECONOMIC SYSTEM refers to the______ A. creation of products and services for consumption. B. production, distribution and consumption of goods and services in a particular society. C. system of production, consumption and trade of goods and services.  

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In a civilization or culture, the economic system is the system of production, consumption, and trade of goods and services. An economic system can be as simple as a small village that utilizes subsistence agriculture to a complex mixed economic system with a gross domestic product in the trillions of dollars.

To simplify matters, there are basically two types of large economic systems in the world today. One is a command economy in which the government or community makes decisions about how much and at what cost goods are produced and sold. In a command economy, the government allocates the profits from production. The other type of economy is a market economy. In this system, the consumer, or citizens make the decisions about what is produced and who profits. They do this by deciding what items that they will buy and at what cost. Economic systems vary widely from culture to culture.

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