Types of Economic System

There are 4 types of Economic Systems. The four types are Traditional Economies, Centrally Planned (Command) Economy, Market Economy and Mixed Economy. The Traditional Economies are economic systems which has strong social networks and is based on primitive methods and tools. In the majority of countries traditional economy has been replaced by command economy, market economy or mixed economy. Centrally Planned Economy is A planned economy also known as command economy and centrally-planned economy is an in economic system which the state or government controls the factors of production and makes all decisions about their use and about the distribution of incom. In a market economy businesses and consumers decide what they will produce and purchase, as opposed to a planned economy where the government decides what is to be produced and in what quantities. A mixed economy is an economy that has a mix of economic systems. The difference between communisim and socialism are communism