Economic System: Definition, Types & Examples
An economic system is a network that forms the economic relationships between individuals in society.
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.
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.
Economic Incentives: What it is, Types & Examples
In economics, incentives are what drives consumer and business behaviour.
