Introduction to economic system

Introduction to economic system

ECONOMIC SYSTEM

An economic system is a set of laws custom rules and regulation governing production, distribution, exchange of goods and services.

The various economic system differ in the way economic resources are control and managed by individuals, business organizations and government. Thus, the means by which nations tries to solve the basic economic problems has given rise to 4 economic system that is

• Traditional or substantial economic system
• Market economic or laisses faire (free enterprise)
• Planned or command economic system
• Mixed economic system