Economic System: System of ownership, production and exchange
An economic system is a man-made and malleable system to regulate the production, resource allocation, exchange, and distribution of goods and services in a society or a geographic area.
Trade, money, markets, banks, laws and regulations are all part of an economic system. Examples of economic systems include:
- Market economy, where prices are decided by supply and demand.
- Socialism \communism, any of the economic ideologies in which the national government owns and manages all or most of the means of production. Most famous is Marxist-Leninism.
- Corporatism, where big box corporations hold great influence over the country's economic policies, usually through lobbying.
- Laissez-Faire capitalism - Capitalism with very little, if any, state intervention. Also called free market.
- barter - economic system common in tribal societies.
References
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