Economic Systems

Definition

An economic system defines how a society organizes its resources to meet its citizens' needs and wants. It determines what goods will be produced, how they'll be produced, and who gets them.

Related terms

Capitalism: An economic system characterized by private ownership of goods and services with free market competition.

Socialism: An economic theory advocating for collective or governmental ownership and administration of means of production and distribution of goods.

Mixed Economy: An economy that combines elements from different economic systems such as capitalism and socialism.