Q:

What are the three major types of economic systems?

A:

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.

Sources:

  1. economywatch.com

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