Economic systems stay alive to answer the following questions:
- What to produce
- How to produce
- For whom to produce
The main systems are traditional, capitalistic, planned and mixed.
Economic systems
- Traditional- a subsistence economy where needs and wants were fundamental
- Communist - production is planned and all property is owned by the state.
- Capitalist -little or no government have power over. Market forces state what is to be produced, how and for whom.
- Mixed economy—a combination of communist and capitalist economies. Market forces are allowed to function, but government reins and regulates the system.
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