Throughout the entire period of the existence of mankind, starting from a primitive society, the economic system, that is, those relations that were established with regard to property and the economic mechanism, contributed to the solution of the main question of how to satisfy unlimited needs with limited resources . The following types of economic systems exist - traditional, command, market, and mixed.
The traditional system is characteristic of the primitive communal system, in which everything - land and capital was in collective ownership, and the distribution of resources took place in accordance with the principles and traditions.
However, over time, it became apparent that factors of production give the greatest return, being in the possession of not families, but individual families.
The main features of such a system are manual labor, a low level of division of labor or its absence, backwardness in the development of technologies, rejection of innovations.
Now consider the remaining types of systems, starting with the market. It is the exact opposite of the traditional.
With this arrangement, the state plays an unimportant role, remaining in the shadow of a market dominated by free competition. Sellers are interested in their products being purchased by a large number of buyers, and they, in turn, are willing to pay the price, which was established spontaneously due to the functioning of the market mechanism.
In a market economy, private property is ubiquitous, entities can dispose of their available resources as they wish, while extracting benefit for themselves (profit), that is, each pursues its own economic interests.
All issues and contradictions arising in the market are resolved by the market independently.
From the foregoing, we can conclude about the shortcomings. The most important thing is that often with such a system there is a huge gap between the rich and the poor. There may be a situation in which some bathe in luxury, while others vegetate in poverty.
That is why such a device was called unfair, and a new idea of a leveling economy began to develop, in which the state itself would eliminate the "gaps" in income.
Thus, the types of economic systems are represented by another category - the command, or administrative-planning, or planning system.
Here, the state takes upon itself the responsibility of resolving almost all issues, distributing orders between enterprises for the production of goods. Moreover, it is surprising that some of them could not be realized, that is, in theory, such manufacturers should have incurred losses, however, money was allotted to the enterprise all the same regularly.
In a planned economy , entrepreneurs do not have freedom of initiative; they produce what the state requires. As a result, manufacturers had no interest in introducing new technologies and increasing labor productivity.
The mixed type is the last that presents the main types of economic systems. It also factors of production are mainly privately owned, but in addition to the market, the state can actively participate in the distribution of resources.
Of course, the types of economic systems without an admixture of one in another do not occur in practice, but rather are developed models. They describe the main trends, but abstracting from many economic phenomena. Even the same types of economic systems in different conditions manifest themselves specifically, however, in theory, rather general, typical characteristics are given for a better understanding.
Thus, we figured out what are the main types of economic systems, examined each of them in more detail. It cannot be said that a market or mixed system is the best, but a command system is not. For each society, those types are selected that are able to increase the efficiency of the economy as a whole with minimal costs.