Explain the main differences among the four types of economic system
There are basically four kinds of economic systems:
1) Market economy- An economic system in which individuals own and operate different factions of production. Examples: Free Enterprise & Capitalism
2) Command economy - An economic system in which government owns and operates all factions of production. Examples: Socialism & Communism
3) Traditional Economy - An economic system based on culture and tradition. Economy is based on agriculture and hunting. Examples: Non-Industrialized agrarian societies.
4) Mixed Economy - An economic system where both command and market systems are featured. Examples: United States is not a pure capitalist country for there are forms of socialism instilled in it to benefit individuals in need of services and has minimum wages, however, free enterprise reigns in the U.S. China also has both forms of economy, however, the Chinese government controls the prices and production.