Types of Economic Systems

Traditional Economies
An economic system in which the decisions are based on the customs, beliefs, religions and etc.

Centrally Planned (Command) Economy
An economic system in which all decisions concerning the production and distribution of goods are made by the political representatives.

Market Economy
An economic system in which the decisions are made by individual businesses and consumers.

Mixed Economy
An economic system in which the decisions are made by both private and public companies.

What is the difference between communism and socialism?
In a communist society, the productions of goods relies solely on the labor of the common people. Therefore, the economy relies completely on the labor of the common people, who work for the "common advantage" rather than personal gain. Although communism and socialism are relatively the same, socialism is based on the production of goods by social need and other factors that nature, while communism is based on the production of goods through common labor for a common benefit.