Market economy, planned economy and mixed economy are the three major types of economic systems that prevail across the world, states Economy Watch. Each economic system offers a different view on the role of government in the economy.
In a market economy the consumers and their buying practices drive the market, while the government's role is only to ensure the market is stable enough to carry out its economic activities, explains Economy Watch. In contrast, a planned economy's decisions are made largely by the government. The consumers' interests have less impact on the economy in this system. A mixed economy incorporates both governmental control and consumer interests.Learn More
The three types of economic resources are commonly known as human resources, natural resources and capital resources. Economists often refer to these three resources as the factors of production.Full Answer >
Traditional economic systems are economies based on dissemination of resources, products and goods based on rituals, routines and customs. Some nations have traditional economies, while traditional economies exist regionally or locally in other places. Regardless of whether local or national, traditional economies revolve around the production and exchange of simple, staple goods such as food and clothing.Full Answer >
The five major economic goals are full employment, economic growth, efficiency, stability and equity, and they are divided into both macroeconomic and microeconomic goals. On the macroeconomics spectrum, policies are made to reach economic growth, stability and full employment. For microeconomics, decisions and policies are driven towards reaching efficiency and equity. As a whole, society's behavior aims to reach the five economic goals.Full Answer >
The three economic questions that every society must answer are as follows: "What to produce?" "How to produce?" and "For whom to produce?" The answers to these questions handle the matters of how to deal with scarcity and how to efficiently allocate resources.Full Answer >