There are three types of Economic systems
1- Free/ market/ Laissez-Faire economic system
2- Capital/ Command economic system
3- Mixed economic system
1- Free market economic system:
Where the economic decisions are taken by the free market and there is no role of government. The surplus and shortages are automatically fixed by the price mechanism. In this system, free market decides what to produce, how to produce and for whom to produce
2- Capital or Command system:
In this system, all the decisions about the economy are taken by government only and there is no intervention of private sector in economic decisions
3- Mixed economic system:
Where both Government and free market contributes towards the economic decisions. Decisions about the public goods and basic necessities of life are mostly taken by the government. This structure keeps the mobility of private sector intact
