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The Three Most Basic Economic Systems In The World

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The three most basic economic systems in the world are: command, market, and mixed. Each type of economic system has its strengths and weaknesses, its propensities and susceptibilities. A command economy is an economic system in which production, investment, prices, and incomes are determined solely and centrally on the decisions and outcomes of the government. Command economies are usually related to or associated with communist states. Two major countries with command economies are China and the Soviet Union. Command economies are advantageous because they can prevent abuse of monopoly power and can ensure an equal standard of living amongst all citizens. In addition, command economies also enable the government to overcome market failure.
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