- A group or organize that want to attribute economic and allocate of resource for production and exchange of goods and services in the community or social club
Example: Canadian people get benefit from the good resource also the economic system booms.
2. Free Market
-A marketplace where prices of commodities and services are traded freely between consumers and marketers
Example: Capitalism believes that competition in a free market makes the economy strong and static.
3. Command or Planned Economy
-Decisions about the basic economic problems continue as projected. A plan is a requirement to carry out economic activities in various fields since the allocation of investment resources to manufacturing to product distribution into the hands of consumers. The plan is an important tool that states use to determine the underlying problem of economic units. The price mechanism has no role in a planned economy.
Example: North Korea, Cuba and the former Soviet Union and countries in Eastern Europe and China used this planned economy system before switching to a market economy.
4. Mixed Economy
-An economic system combined with central planning where both private and public involve in resolving the basic economic problems.
Example: The advantage of a mixed economy is that an economic system is quite flexible.
5. Transitional Economy
-It is a system that changes from communist of central planning to free markets.
Ex: Many countries are happy that their economics are changing from being controlled to open market.
6. Price Mechanism
It refers to conditions that change in the price of goods and services springing up from the driving strength of demand and supply.
Ex: The price mechanism is found in all markets except the market exclusivity because the price mechanism is the only market where the economic activity goes with a free market economy or a capitalist or liberal or mixed economies
7. Merit Goods
-Goods or services that any…