Economic Systems: Components and Types

An economic system is the system of producing and distributing of goods and services and allocating resources in a society. It includes the combination of the various institutions, agencies, entities (or even sectors as described by some authors) and consumers that comprise the economic structure of a given community. A related concept is the mode of production.
The study of economic systems includes how these various agencies and institutions are linked to one another, how information flows between them, and the social relations within the system (including property rights and the structure of management).
Among existing economic systems, distinctive methods of analysis have developed, such as socialist economics and Islamic economic jurisprudence. Today the dominant form of economic organization at the global level is based on capitalist market-oriented mixed economies.[1]
Economic systems is the category in the Journal of Economic Literature classification codes that includes the study of such systems. One field that cuts across them is comparative economic systems. Subcategories of different systems there include: planning, coordination, and reform productive enterprises; factor and product markets; prices; population public economics; financial economics national income, product, and expenditure; money; inflation international trade, finance, investment, and aid consumer economics; welfare and poverty performance and prospects natural resources; energy; environment; regional studies political economy; legal institutions; property rights.

There are multiple components to economic systems. Their interaction may be coherent or result in instability. Decision-making structures of an economy determine the use of economic inputs (the factors of production), distribution of output, the level of centralization in decision-making, and who makes these decisions. Decisions might be carried out by industrial councils, by a government agency, or by private