4 Types of Economic Systems

Traditional, command, market, and mixed.

It's the most traditional and ancient one in the world. These economies still produce products and services that are a direct result of their beliefs, customs, traditions, religions, etc. These areas tend to be rural, second- or third-world, and closely tied to the land, usually through farming. However, there is an increasingly small population of nomadic peoples. They never see profit and surplus.

1) tradition and custom are preserved while it is virtually non-existent in market/mixed economies 2) Each member of this economy has a more specific and pronounced role, and these societies are more satisfied.

This system doesn't enjoy the things other economies take for granted, such as medicine, technology, etc., although happiness is not guaranteed through these things.

a large part of the economic system is controlled by a centralized power; often, a federal government. This kind of economy tends to develop when a country finds itself in possession of a very large amount of valuable resource(s). The government then steps in and regulates the resource(s). The government in this economic system only desires to control its most valuable resources, while other things, like agriculture, are left to be run by the people.

As long as the government is intelligent in regulations, these advantages will be applied. 1) this economy is capable of creating a healthy supply of its own resources and it generally rewards its own people with affordable prices (but because it is ultimately regulated by the government, it is ultimately priced by the government). Still, there is often no shortage of jobs as the government functions similarly to a market economy in that it wants to grow and grow upon its populace.

Very similar to a free market. The government does not control vital resources, valuable goods or any other major segment of the economy. In this way, organizations run by the people determine how the economy runs, how supply is generated, what demands are necessary, etc.

A capitalist country; can also be regarded as a mixed economy.

An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. An advantage to this system is that it can build up an explosive economy that is well controlled and safe.

A way of organizing a society in which major industries are owned and controlled by the government rather than by individual people and companies. The government in this system controls the most valuable resources and leaves the rest of the market to operate freely.

1) Separation of the market and government. The government is prevented from becoming too powerful this way.

Also known as a Dual Economy, this system refers to the amalgamation (mixture) of a market and command economy.

1) the market is more or less free of government ownership except for a few key areas (education, transportation, USPS, etc.).

1) It can suffer from downfalls suffered in other economies. For example, the last hundred years in America has seen a rise in government power. Not just in imposing laws and regulations, but in actually gaining control, becoming more difficult to access while simultaneously becoming less flexible

The amount of governmental control. Can a true balance exist? Where should there be more government regulation? Where should there be less? These questions have no real answer. Only a relatively small portion of the population will, at any given time, agree with the state of a mixed economy. It must be a strong form of government indeed to avoid collapsing under this constant pressure.