Economic Systems

Economic systems refer to the type of economic structure a nation has. For example, socialism is a type of economic system which relies on centralised control of resources. Other types of economic systems may rely more heavily on the free market, whilst others might be a mix of the two.

Economic System Definition

Economic System Definition

An economic system is a network that forms the economic relationships between individuals in society. In other words, how the people of a nation come together to create a complex whole and conduct economic transactions with each other.

Private property to show the importance of property rights

The Importance of Property Rights

An efficient free market is reliant on strong property rights as a fish is to water. Its purpose is to ensure that competitive control over economic resources is resolved in a peaceful way. Rather than disputes leading to violence, they can be resolved through the legal system.