Different economic systems differ as to how they respond to the economizing problem.
Different economic systems differ as to how they respond to the economizing problem.
- At one extreme is pure capitalism which relies on the private ownership of its economic resources and the market system.
- At the other extreme the command economy(socialism, communism) uses the public ownership of its resources and central planning.
- Economies in the real world lie between these two extremes and are hybrid systems.
- Some less-developed nations have traditional (or customary) economies which are shaped by the society’s customs and traditions.
- For example an economic system may be influenced by the nation’s religious beliefs