Economic Systems

Definition

Economic systems refer to the way a society organizes and manages its resources, production, distribution, and consumption of goods and services. Different economic systems include capitalism, socialism, communism, etc.

Related terms

Capitalism: An economic system based on private ownership of resources where individuals pursue their self-interests leading to competition.

Socialism:

An economic system that aims for collective ownership or control over resources with the goal of reducing inequality.

Communism: A socioeconomic ideology advocating for common ownership of means of production aiming at creating a classless society.