Types of economic systems: traditional, command, market and mixed

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Throughout the entire period of human existence, from the primitive society, solving the core issue of how limited resources to meet unlimited needs, contribute to the economic system, that is the relationships that were established with regards to the property and the economic mechanism.The following types of economic systems - traditional, command, market and mixed.

traditional system is characteristic of primitive society in which everything - land, capital, and is collectively owned, and resource allocation took place in accordance with the traditions and customs.

However, over time it became obvious that the factors of production give the greatest return, not being in possession of the collective and individual families.

The main features of this system is manual labor, low level of division of labor, or its absence, the backwardness in technology, innovation rejection.

Now consider the remaining types of systems, from the market.It is the antithesis of the traditional.

With this arrangement, the state plays an unimportant role, staying in the shade of the market, which is dominated by free competition.Sellers want their products purchased by a large number of buyers, and those, in turn, are ready to pay the price, which was established spontaneously as a result of the functioning of the market mechanism.

In a market economy, private property everywhere, actors can manage their resources as they wish, at the same time removing the benefit for themselves (profit), that is, each pursuing its own economic interests.

All emerging market issues and controversies are resolved by the market alone.

From the above it can be concluded, and about the deficiencies.The most important - is that it is often in such a system there is a huge gap between the rich and the poor.There may be a situation in which some are bathed in luxury, while others are mired in poverty.

That is why such a device has been called unfair, and began to develop a new idea of ​​egalitarian economy, which the government itself would eliminate the "abyss" of income.

Thus, the types of economic systems represented another category - a team, or administrative scheduled or planned system.

where the state takes on the responsibility for the solution of almost all the issues and distribute orders among enterprises in the production of goods.And surprisingly, some of them did not find the implementation, that is, the idea of ​​such producers were to lose money, but the money allocated to the enterprise is still a regular basis.

With the planned economy entrepreneurs do not have freedom initiative, they produce something that requires the state.As a result, the producers had no interest in introducing new technologies, increasing productivity.

Mixed - the latter, which are the main types of economic systems.It also factors of production are mainly privately owned, but the allocation of resources in addition to the market can be actively involved and the state.

course, the types of economic systems without admixture of one another do not occur in practice, and are a more developed model.They describe the main tendencies, but abstracting from many economic phenomena.Even the same species of economic systems in different specific conditions manifest themselves, however, are rather general theory typical characteristics for better understanding.

So we figured, what are the main types of economic systems, have considered each of these in more detail.You can not say that the market or mixed systems are the best, and the command - no.For each company selected species that are able to increase the efficiency of the economy as a whole with minimal costs.