Different Economic Systems
In order to solve the basic economic problem of scarcity, economic systems emerge or are created by different economic agents within the economy
These agents include consumers, producers, the government, & special interest groups (e.g. environmental pressure groups or trade unions)
Any economic system aims to allocate the scarce factors of production
3 Types Of Economic Systems
The three main economic systems are a (free) market system, mixed economy, & planned economy
The Free market system is the economic system where the laws of demand an supply are managed without any interference of the government , it mostly tells about private firms cause the interaction be 2 private firms is a free market
In a mixed economy there is some amount of free market and market managed by the government , it includes firms from microeconomics and also firms from macroeconomy
In a planned economy all of the goods and resources and all the control of supply and demand are owned by the state and government
How Resources Are Produced
The producing figures are allocated to producers and from there the output of the resources are produced to consumers to satisfy there want and need