The main types of economic systems

With the development of society changed and its various spheres.Society, politics and the economy today is much different from these in the Middle Ages.Step by step and changed social relations related to production, consumption, exchange and distribution.

Concept and types of economic systems

Speaking briefly but succinctly, this concept is characterized by a strict way of organizing the relationships between the so-called economic agents.This method solves the questions about how, and for whom to produce it.

Today, scientists, economists and historians are the following main types of economic systems: traditional, market (modern) and the command.Each of them has its own distinct characteristics.On them will be discussed below.

Types of economic systems: traditional

As the name implies, this type of economy based on different traditions and a high degree of conservatism.What are the features inherent in it?

example, the lack of technology.In the Middle Ages it had a predominant importance of manual labor.There were widespread handicraft workshops, in which each was able to produce a certain commodity unit.Thus, the process is very time consuming.And all because of the lack of division of labor.

At the same time there has been a small-scale production.Its essence is that produced artisan products, applying for this at his own disposal the necessary resources.

In addition, the main type of economic organization is the community.In other words, it was conducted jointly by several families.

traditional economic system has an impact on society.There were class division.Necessarily a reverence and respect for the centuries-old traditions and lifestyle.That's what was the reason for the lack of or very slow development of the society and its economic relations.

Types economic system: the administrative-command

those of Russian citizens, who found the Soviet era, the principles of the system know firsthand.What are they?

Unlike traditional systems are well developed in a variety of manufacturing industries.However, it is entirely controlled by the top, by the state.

There is no place for private ownership.All general and at the same time draw.

And only the state decides how, how and what to produce.In the USSR, for example, there were five-year plans, during which it was required to produce a certain number of products.However, the command system existed not only here but also in a number of Asian and European countries.

Types of economic systems: market

We live in an age of market relations.This means that everyone has the right to private property.Anyone has the right to work as a factory or factory and start their own business.By the way, the government is even encouraging, highlighting the budget specifically designated for that purpose (for the development of small businesses).

In a society with a well-developed market relations not only economic but also social infrastructure.This type of system has a high degree of flexibility and elasticity.

Types economic system: mixed

In modern conditions there are not so many countries, economic relations which could be described specifically.So today, to talk about the ubiquity of the mixed economic system - one in which there are features of two or even three systems at once.