What are 3 type of Economic system

Types of economic systems

Policies, rules, and regulations could be different from one country to another country because of this economic system and other factors that can affect the systems.

Today we are going to show you some of the systems that have a huge impact on the economic power of a country

a) The Command System

 The Command System controlled by the government of any country because it is is the main Central authority to control all the businesses and distribution of resources all over the country.

Through different decision making and bureaucratic control over different resources, The Command System is responsible to control everything in the country even the military decision and other actions.

Most of the countries like Russia and China are working on this  The Command System. The Command System can also be divided into different other systems and authorities that can handle different stuff in a country.

If we looked out at the economic power of Pakistan, 110 you will be noticed that the system of the Pakistani government is divided into different subcategories that are involved in controlling different departments of the country.

National Fertilizers corporation, utility stores Corporation, national Shipping Corporation, and many other departments like Pakistan petroleum Limited are these kinds of examples that hold the complete system.

These types of socialism and communism are controlling the complete state and also its broader range of economic activities.

b) Market system

Instead of controlling the central command of a country by a government through planning and different public Enterprises market system is built on different private enterprises.

This type of system resources and employees are managed by different private enterprise by ignoring the central role of planning by the government.

Different private enterprise individual businesses manage their prices and cost for different products related to the competitive market that can make a wealthy department in a community.

The regulatory of supply and demand is another thing that can take effect and competition in the free market. If you look around in developing countries like Asia, Africa japan, and other European Union countries they are working on these types of systems which is derived from capitalism.

Fauji controlling and better future of economic activities this system is one of the amazing roles of individuals and also by the other economic activities.

c) mixed systems

Which system is the combination of capitalism and communism? In this type of system, various types of mixed systems work together privately and also by the central command of the government.

Departments working under this mixed system are also called as semi-government departments. Along with some government different private businesses are also working and involved in different markets to boost up economic activities.

If you look around on the world map there are many different countries which are working on this type of mixed system and Pakistan is one of them.

In Pakistan as per market conditions to supply goods and export and import of different stuff and requirements of services for different customers around the country they are allowed by the different economic systems and sectors to carry on their work with the agreement of government departments.

In different sectors government is also involved in Economics sectors working together on how to make a hold stand like a defense aviation air and shipping.

Here are some of the difference between capitalism and socialism

As one of the major differences between capitalism and socialism is government control and private enterprise control. Well here are some of the main differences between them.

Resources ownership in a capitalist economy is done privately while in a socialist economy it is done by the state and the government is responsible for resource ownership.