Economic Systems

Economic Systems are basically used by a society to produce and distribute goods and service or it could also be how the government tell us what we can get and how to get it. In order to create a economic system they always require to have these considering four questions answered.

1. What goods and services to produce?
2. How will they produce them?
3. Who will get them/
4. How much will they produce now and how much later?

When looking upon thee economic systems there are 3 types. Traditional economies make up there system by basing it on habits and customs. In other words, children who grow up usually end up having the same job that there parents had. These countries are mostly seen as the developing countries. Command economy is all based on the basic economics and one might say that the only advantage that it provides for other is the fact that it provides for people all equally. Although it does have its advantages the disadvantage that some people may not have the incentive to work hard as  other professions. Lastly there is also the Free Market economy that questions are usually answered by individual buyers and sellers. Basically, the supply and the demand is what influences the economy which is all based upon self-interest.

Many countries don't actually have it based on one economy in reality. Usually one economy is based on multiple and rather than just being named one it usually recognized as a Mixed economy. Never is one purely one economy; therefore, mixed economy was made for this purpose. If one can't grasp the idea of what it may be there is also examples of what it maybe. I prime example of a American mixed economy is the U.S itself  as it could usually be seen as a free market economy but it does have some elements of a command economy. Some features of the U.S being a free market is the individuals having rights to choose, having more competition, and getting private property. Features for a command economy is having government regulations of business practices, government limiting certain choices, and providing aid to the needy.