Presently many economic systems are in place in the world. Out of these, the following systems are prominent:
- Household Level System
- Market System (Capitalist System)
- Socialist System
- Mixed Economic System
1. Household Level System: This system revolves around the household interest only. It is traditional system in which the people produce goods just enough to feed their families. In most cases, trading is done on the basis of barter system.
2. Market System (Capitalist System):
Market system is in use in the capitalist countries and in the free nations with democratic systems. This system is influenced by the trend of market economy. For example, the quantity of production and prices fluctuate according to the demand of market. USA, UK, France, Germany, Japan, Canada, Brazil, Italy, Pakistan, Sweden, Australia and Singapore are great centers of market system.
3. Socialist System:
Socialist System is actually a state controlled system. It is prevaent mostly in communist (Socialist) countries such as Russia, North Korea, China, Cuba etc.
4. Mixed Economic System:
This system is a blend of market and socialist systems. the government intervenes to modify the market economy to check monopoly, to control prices and to ensure free competition.
Also read: Different kinds of Economic Activities.