Types of Economic Systems

There are four major types of economic systems in the world today: command, traditional, market and mixed economys.

In a command, or planned economic system, the government decides what is producted, who produces it and who recieves it. Althought the Soviet Union was supposedly had a communist economy, it was actually a command economy.

In contrast, in a market or free enterprise economy, the production and distribution of goods is dtermined by bussinesses and consumers. In a market economy, there is little to no government intervention.

A traditional economy is a system i which a person's occupation is determined by he occupation of thier predecesors. Traditional ecnomoys are largely restricted to rural or underdeveloped areas of nations.

A mixed economy is a mix of several economic systems. Mixed economys usually contain a mix of market and command systems, meaning a mix of private and state operated bussinesses.

The differnce between a communist and socialist state is that the goal of a communism is to have a stateless society, meaning no government, whereas a socialist society everything is the posetion of the government.