Instant Access To 100,000+ Essays!

Market, Command, and Traditional Economies An economic system is how society responds to the problem of scarcity. Economic systems differ in every country by who controls economic activity. Three different economic systems exist: market system or capitalism, command economy or communism, and a traditional economy. Private ownership and the use of market systems and prices to manage economics are known as a market system or pure capitalism. In the market system, a business makes decisions in order to expand and to make as much profit as they can. Businesses own resources, control the prices of their products, and sell their products in the markets of the system. Since every business wants to maximize profit, comp