Module 1: Introduction to Economics

XSIQ
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Economics - Economic Systems

Economic Systems:

THE MARKET
CENTRAL PLANNING AUTHORITY

CAPITALISM
Market Capitalism
Planned Capitalism

SOCIALISM
Market Socialism
Planned Socialism

The four main economic systems as shown above are market capitalism,
centrally planned capitalism, market socialism and centrally planned
socialism. None of these economic systems exist in their pure form. All
have some market decision making and some government planning as well as
some private ownership of resources and some public ownership of resources.


Economic systems are never static. They are continually changing and
evolving. Most economies now use the market to coordinate economic
activity. Even countries like China, that have traditionally relied on
government directives, today place great importance on the role of the
price mechanism.

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