The term "types of economic systems" is often used in economics and politics, in scientific articles and works. But it is not only a schoolchild who is preparing for the Unified State Exam or a student who needs to understand the types of economics to pass the exam. Understanding the foundations on which a particular state, country, or economy functions will help to predict with a certain degree of probability how cooperation between countries, business partners and ordinary people will be built (or how it can be built). And for competent investment, what factors can affect the value of manufacturers' securities in different countries, how to properly analyze the financial performance of companies.

What are the types of economic systems?
An economic system is a set of economic processes in society, a certain way of coordinating people's activities in the process of production, distribution, exchange and consumption of resources.

The type of economic system is determined by the principles and rules of organization and functioning of economic processes. After all, the goal of any system is to achieve maximum efficiency, and the goal of an economic system is to organize the relationship between the producer and the consumer in such a way as to act with maximum efficiency and meet the needs of society in conditions of limited resources.

The type of economic system depends on the answer to the following questions (C. R. McConnell and S. L. Brew): how much to produce, what to produce, how to produce, who should receive the products, whether the system is able to adapt to changes. To put it simply, the type of economic system determines:

forms of ownership (for the means of production in the first place);
the method of regulating the economy (the degree of state participation);
the method of distributing resources (what, how and for whom to produce);
the predominant form of management (natural or commodity).
The modern world knows four types of economic systems, and they were formed both historically (as the country developed, it moved from one type to another) and consciously (the country deliberately stays or chooses one or another way of regulating the economy):

traditional;
market;
team;
mixed.
Traditional type of economic system
Historically, this is the first economic system. It is characterized by low labor productivity, the prevalence of manual labor and natural economy, and primitive tools. Customs and traditions play a key role in the distribution of resources here, the system is quite closed, but stable.

First of all, the economy is based on fishing and hunting, agriculture. Often, instead of banknotes, the exchange of resources is used. Trade is not widespread. A fairly environmentally friendly type of economy, since there is practically no waste: what is produced is consumed. But this type is poorly adapted to natural disasters (drought, fires), and only elementary needs are satisfied.

Market type of economy
A fairly common type of economic system in which the law of supply and demand reigns. They are the ones who determine what, how and for whom to produce. Prices are formed spontaneously, they are not regulated by the state (marginal ones can be set). Manufacturers decide for themselves what goods and in what quantity to produce. This is a type of market competition without much government interference.

Efficiency of this type is high: the free flow of ideas gives room for innovation, and free competition gives rise to the satisfaction of a large number of needs. However, there are also disadvantages: the same competition can lead to poor working conditions, unemployment, which leads to stratification of society and an increase in inequality among the population. A low level of social responsibility can also be attributed to the dangers of this type: everything is decided by profit, the ideals of humanism are alien to many entrepreneurs.

Examples of countries with a market type of economic system are the United States and Canada.

Command (command-administrative) economy
In this type, the state form of ownership of basic resources prevails. And the economic processes themselves are regulated in detail by the state. It determines what and for whom, in what quantity to produce. It is the state that manages the economy and controls the distribution of wealth.

This type is characterized by a centralized pricing procedure, as well as the lack of freedom of choice among manufacturers. It is the state that has a monopoly on the market.

Despite the obvious disadvantages, such as the lack of freedom of action and choice, innovation, high bureaucracy, mismatch between supply and demand, and the risk of the shadow economy, this type has advantages. The population, as a rule, feels protected: in such a society, there is practically no (or not obviously) inequality. Low unemployment. The economy is highly stable and, with competent management, is able to develop.

Examples of countries with this type of economy: Cuba, North Korea.

Mixed type of economic system
It combines several types. Here, as in a market economy, the law of supply and demand determines the production of goods. But the state, represented by its administrative bodies, can determine marginal prices, protect people and stimulate certain types of entrepreneurial activity. The production of goods can be controlled by the state (but the state does not dictate directly, as in a planned economy).

The private and public sectors of the economy are combined for the successful functioning of the system, entrepreneurship is encouraged, and competition can be regulated by the state in one way or another. State bodies can also participate in the redistribution of income to achieve social justice or for the sake of the social well-being of vulnerable segments of the population.

It is important for the state to contribute to the development of the economy not so much directly, but by forming a good infrastructure, a legal framework, encouraging competition, preventing excessive inflation, and investing in education, science, and healthcare.

Examples of such countries are Germany and Japan.

At present, the mixed type of economic system seems to be optimal from the point of view of maintaining a balance of public/private, individual/general, profit/social orientation. However, even with this type of economy, there is still a risk of stagnation, an increase in the gap between the population, and restriction of competition. It is obvious that the world economy will be rebuilt and the lack of trust between different countries will contribute to the functioning and development of types of economic systems.