What types of economic systems do you know and what is their essence?
There are four types of economic systems. The first economic system is the traditional
economic system. In the traditional economic system, the economic system is based on customs
and traditions. Therefore the vast majority of goods and services produced have a direct result on
customs, cultures, and beliefs. The second economic system is the command economic system.
In the command economic system, a large portion of the economic system is under control of a
centralized power that is the government that controls everything from planning to the
redistribution of resources. The third economic system is a market economic system or a free
market economy. In a market economic system, firms and households act in self-interest in the
determination of resource allocation, goods produced, and who consume the products. There is
no government intervention in a pure market economy system. The last economy system is the
mixed economy system; t...
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