Economic System
- Economic System refers to the manner in which individuals and institutions are connected together to carry out economic activities in a particular area. It is the methodology of doing economic activities to meet the needs of the society. There are three major types of economic systems.
- They are:
- Capitalistic Economy (Capitalism),
- Socialistic Economy (Socialism)
- Mixed Economy (Mixedism)
- Adam Smith, often the groundwork fcalled the 'Father of Capitalism,' laid [Read More] or this economic system. Also known as a free or laissez-faire economy, capitalism minimises government intervention, allowing the market to dictate economic activities.
- Examples of capitalistic economies include the USA, Germany, Australia, and Japan. However, these countries also implement significant social welfare measures to protect vulnerable populations from market forces.