Answered: What are the types of economic systems?…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 27CTQ: Why do you think that most modern countries economies are a mix of command and market types?

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What are the types of economic systems? How will you differentiate Command from a Market economy?

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There is scarcity of resources across the world. These scarce resources undergoes through a production process in the economic systems of various countries so as to provide output for their citizens. The manner in which these resources gets distributed within an economy defines the type of economic system. Mainly there are four different types of economic systems namely, a traditional economy, a market economy, a command economy, and a mixed economy.

In a market economy, the forces of supply and demand play major role in any decision making while in a command economy, government agencies direct the activities of the economy.

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