An economic system refers to the way a society organizes and distributes its resources, goods, and services. It encompasses the rules, institutions, and methods that guide production, consumption, and trade within a particular society.
Related terms
Capitalism: An economic system where trade and industry are controlled by private individuals or businesses rather than by the state.
Mercantilism: An economic theory that dominated colonial America in which colonies were expected to export raw materials to their colonizing country in exchange for finished goods.
Socialism: An economic system where the means of production are owned and managed by the state or community as a whole.