Editing Economic system (section)

== Typology ==
[[File:Economic Systems Typology (v4).jpg|thumb|375px|Common typology for economic systems categorized by resource ownership and resource allocation mechanism]]
There are several basic questions that must be answered in order for an economy to run satisfactorily. The [[scarcity problem]], for example, requires answers to basic questions, such as what to produce, how to produce it and who gets what is produced. An economic system is a way of answering these basic questions and different economic systems answer them differently. Many different objectives may be seen as desirable for an economy, like [[Economic efficiency|efficiency]], [[economic growth|growth]], [[liberty]] and [[Equality of outcome|equality]].<ref>David W. Conklin (1991), ''Comparative Economic Systems'', University of Calgary Press, p.1.</ref>

Economic systems are commonly segmented by their property rights regime for the means of production and by their dominant resource allocation mechanism. Economies that combine private ownership with market allocation are called "market capitalism" and economies that combine private ownership with economic planning are labelled "command capitalism" or [[dirigisme]]. Likewise, systems that mix public or cooperative ownership of the means of production with economic planning are called "socialist planned economies" and systems that combine public or cooperative ownership with markets are called "market socialism".<ref>{{cite book |last= Rosser|first= Mariana V. and J Barkley Jr.|title= Comparative Economics in a Transforming World Economy|url= https://archive.org/details/comparativeecono00jrjb|url-access= limited|publisher= MIT Press|date=July 23, 2003|isbn= 978-0262182348|pages = [https://archive.org/details/comparativeecono00jrjb/page/n19 8]|quote=This leads us to describe two extreme categories: market capitalism and command socialism. But this simple dichotomization raises the possibility of “cross forms,”, namely, market socialism and command capitalism. Although less common than the previous two, both have existed.}}</ref> Some perspectives build upon this basic nomenclature to take other variables into account, such as class processes within an economy. This leads some economists to categorize, for example, the Soviet Union's economy as [[state capitalism]] based on the analysis that the working class was exploited by the party leadership. Instead of looking at nominal ownership, this perspective takes into account the organizational form within economic enterprises.<ref>{{cite book |last= Rosser|first= Mariana V. and J Barkley Jr.|title= Comparative Economics in a Transforming World Economy|url= https://archive.org/details/comparativeecono00jrjb|url-access= limited|publisher= MIT Press|date=July 23, 2003|isbn= 978-0262182348|pages = [https://archive.org/details/comparativeecono00jrjb/page/n19 8]|quote=Indeed, aside from the variation of ownership forms, some follow certain ideas in Marx, saying that how one class relates to another is the crucial matter rather than specifically who owns what, with true socialism involving a lack of exploitation of one class by another. This kind of argument can lead to the position that the Soviet Union was not really socialist but a form of state capitalism in which the government leaders exploited the workers.}}</ref>

In a [[Capitalism|capitalist economic system]], production is carried out for private profit and decisions regarding investment and allocation of factor inputs are determined by business owners in factor markets. The means of production are primarily owned by private enterprises and decisions regarding production and investment are determined by private owners in [[capital market]]s. Capitalist systems range from ''[[laissez-faire]]'', with minimal government regulation and state enterprise, to regulated and social market systems, with the aims of ameliorating market failures (see [[economic intervention]]) or supplementing the private marketplace with social policies to promote equal opportunities (see [[welfare state]]), respectively.

In socialist economic systems ([[socialism]]), [[production for use]] is carried out; decisions regarding the use of the means of production are adjusted to satisfy economic demand; and investment is determined through economic planning procedures. There is a wide range of proposed planning procedures and ownership structures for socialist systems, with the common feature among them being the social ownership of the means of production. This might take the form of [[public ownership]] by all of the society, or ownership [[Worker cooperative|cooperatively]] by their employees. A socialist economic system that features social ownership, but that it is based on the process of capital accumulation and utilization of capital markets for the allocation of capital goods between socially owned enterprises falls under the subcategory of market socialism.

=== By resource allocation mechanism ===
The basic and general "modern" economic systems segmented by the criterium of [[resource allocation]] mechanism are:
* [[Market economy]] ("hands off" systems, such as ''laissez-faire'' capitalism)
* [[Mixed economy]] (a hybrid that blends some aspects of both market and planned economies)
* [[Planned economy]] ("hands on" systems, such as [[state socialism]], also known as "command economy" when referring to the [[Soviet-type economic planning|Soviet model]])

Other types:
* [[Traditional economy]] (a generic term for older economic systems, opposed to modern economic systems)
** [[Non-monetary economy]] (without the use of [[money]], opposed to [[monetary economy]])
** [[Subsistence economy]] (without [[economic surplus|surplus]], exchange or [[market trade]])
** [[Gift economy]] (where an exchange is made without any explicit agreement for immediate or future rewards and [[Profit (economics)|profits]])
** [[Barter economy]] (where goods and services are directly exchanged for other goods or services)
* [[Participatory economics]] (a decentralized economic planning system where the production and distribution of goods is guided by [[Participation (decision making)|public participation]])
* [[Post-scarcity economy]] (a hypothetical form where resources are not scarce)

=== By ownership of the means of production ===
* [[Capitalism]] ([[private ownership]] of the [[means of production]])
* [[Mixed economy]]
* [[Socialist economics|Socialist economy]] ([[social ownership]] of the means of production)

=== By political ideologies ===
Various strains of [[anarchism]] and [[libertarianism]] advocate different economic systems, all of which have very small or no government involvement. These include:
* [[Left-wing politics|Left-wing]]
** [[Anarcho-communism]]
** [[Anarcho-syndicalism]]
** [[Anarcho-socialism]]
**[[Communalism (Bookchin)|Communalism]]
* [[Right-wing politics|Right-wing]]
** [[Anarcho-capitalism]]
* [[Libertarianism]]
** [[Libertarian socialism]]
**[[Mutualism (economic theory)|Mutualism]]
** [[Syndicalism]]

=== By other criteria ===
[[Corporatism]] refers to economic [[Tripartism|tripartite]] involving negotiations between business, labor and state interest groups to establish economic policy, or more generally to assigning people to political groups based on their occupational affiliation.

Certain subsets of an economy, or the particular goods, services, techniques of production, or moral rules can also be described as an "economy". For example, some terms emphasize specific sectors or externalizes:
* [[Circular economy]]
* [[Collectivist economy]]
* [[Digital economy]]
* [[Green economy]]
* [[Information economy]]
* [[Internet economy]]
* [[Knowledge economy]]
* [[Natural economy]]
* [[Virtual economy]]
* Human Resource Economic System <ref>{{Cite journal |last=Vats |first=Shreya |date=August 2023 |title=Human Resource Economic System: A Comparison of Human Resource Economic System with Capitalism and Socialism |journal=International Journal of Research Publication and Reviews |volume=4 |issue=8 |pages=366–369 |doi=10.55248/gengpi.4.823.50316 |issn=2582-7421|doi-access=free }}</ref>{{Unreliable source?|date=January 2024}}<ref>{{Cite journal |last=Vats |first=Gulshan |date=2023-09-15 |title=Whether the Human Resource Economic System is possible, As Well As Being an Advanced Economic System compared to Capitalism and Socialism |url=https://journal-innovations.com/assets/uploads/doc/d39e1-940-949.16981-doi.pdf |journal=Innovations |volume=74 |pages=940–949 |doi=10.54882/7420237416981}}</ref>{{Unreliable source?|date=January 2024}}

Others emphasize a particular religion:
* [[Arthashastra]] – Hindu Economics
* [[Buddhist economics]]
* [[Distributism]] – Catholic ideal of a "third way" economy, featuring more distributed ownership in a mixed economy
* [[Islamic economics]]

The type of [[labour power]]:
* [[Slavery|Slave]] – and [[Serfdom|serf]]-based economy
* [[Wage labour]]-based economy

Or the [[means of production]]:
* [[Agrarian economy]]
* [[Industrial economy]]
* [[Information economy]]