Economic System

Definition

An economic system refers to the way a society organizes its production, distribution, and consumption of goods and services. It includes institutions, laws, customs, and practices that determine how economic activities are conducted within a society.

Related terms

Command Economy: An economic system where decisions about production and allocation are made by a central authority or government.

Market Economy: An economic system where decisions about production and allocation are determined by individuals through market interactions.

Mixed Economy: An economic system that combines elements of both command economy and market economy.