• Types of Economic Systems


    Inyang Umoh (tutor)
    05-02-2016 07:15:00 +0000

    It's important that you be able to distinguish between various types of economic systems.
    When we say 'economic systems' we are talking about how the economy of a country is organized.
    - How are good produced?
    - How are resources allocated?
    - How are goods and services distributed?
    - What rules should govern trade?

    These are the core concepts that economics systems try to address.

    Types of economic systems
    The 3 main types of economic systems are:
    - Socialism : where the means of production are owned by the group (often the whole society or the government)
    - Capitalism : where the means of production are owned by private individuals
    - Mixed economies: a combination of both.

    You may also see mention of traditional economic systems as a 4th. In traditional economies, the means of production are governed by traditional beliefs.

    Is Nigeria a capitalist, socialist or mixed economy? Give examples to support your answer

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