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What are the 4 types of economic systems?

In economics, four types of economic systems characterize most economies around the world: traditional, command, market, and mixed economies. A traditional economic system focuses exclusively on goods and services that are directly related to its beliefs and traditions. A command economic system is characterized by a dominant centralized power.

What is a traditional economic system?

In other words, traditional economic systems are the most basic and ancient type of economy. Large parts of the world still qualify as traditional economies, primarily rural areas of second- or third-world countries, where most economic activity revolves around farming and other traditional activities.

What type of economic system does a country have?

In addition, a country may have one predominant type of economic system, but some of its regions may carry a different system, with real-world economies being more dynamic and more complex than their theoretical counterparts (Duffy, 2014). Typically agrarian in nature, traditional economies allocate resources based on kinship, custom, and religion.

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