Economic Systems

Every country has the difficult decision of how to support their people, including their wants and needs; they do so by picking a specific economic system. There are four completely different types of economic systems; traditional, command, market, and mixed economies. “Most countries have a mix of three different types of economic systems”.(Clayton 55) India is a worthy example of mixing the three main economic systems by combining elements of a traditional, command, and market economy. (Clayton 33) Traditional economies are based on scarce resources, as well as rituals, habits, and customs; much different than command economies. Command economies generally have one central authority that makes the dominant economic decisions. Last but not least of the three main economic systems is the market economy. Market economy is very similar to free enterprise economy, in the ways of helping people make decisions and allocate resources by the supply, demand and price system. There is also an economy called mixed economy. This is the type of economy that India uses to support their wants and needs of their people. Out of all of these four types of economic system the most successful is a market economy. Market economies give the most freedom not to just specific groups of people, but to everyone. Market economies also have the highest degree of consumer satisfaction as well as a lack of government interference. Freedom is a very important inanimate object most individuals wish to have in their life. Market economies provide freedom of all kinds to all people; such as being able to spend their own hard earned money on any good(s) or service(s) he/she chooses to. Another type of freedom market economies provide is the ability to choose where to work, whom to work for, or what education the individual wants to pursue. “They (individuals in a market economy) also are free to decide where and when they want to work and if they want to invest further in

Cited: • Clayton, Gary E. "2.1." Economics: Principles and Practices. New York: Glencoe, 1995. 37+. Print. • "The Role of Government in a Market Economy." The Role of Government in a Market Economy. Alicia Ross, 21 Apr. 2010. Web. 15 Apr. 2014