Economic system
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An economic system is a system of production, resource allocation, exchange, and distribution of goods and services in a society or a geographic area.[1]
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.
- State capitalism, where the means of production are organized and managed as state-owned business enterprises, and wages are decided by the government.
References[change | change source]
- ↑ Gregory, Paul R and Stuart, Robert C. 2013. The global economy and its economic systems. Independence, KY: Cengage Learning, 21-47. ISBN 1-285-05535-7
