An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Why are there different types of economic systems? There are four types of economies: Pure Market Economy, Pure Command Economy, Traditional Economy, and Mixed Economy. Of these, a mixed economy is an economy organized with some free-market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism. Firstly mixed economies protect private property. Secondly, they allow the free market and the laws of supply and demand to determine prices. Thirdly, they are driven by the motivation of the self-interest of individuals. Mixed economies socialize select industries that are deemed essential or that produce public goods. In a mixed economy, all three sectors coexist in harmony, i.e. private sector, public sector, and joint sector. Understand more on this concept through this explicitly explained PPT. Download to read the entire resource and do share if you find it useful.

Ananthu Sibi

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