There are three types of economic systems:-- capitalist, socialist and mixed.These classifications are based on the method of resource allocation in the system, which is market allocation, command or central plan allocation and mixed allocation, respectively.
There are no pure examples of market or central plan allocation systems. All actual systems are mixed allocation.
* MARKET ALLOCATIONA market allocation system is one which relies upon the customer or consumer to allocation resources. Consumer choice or purchase under a market system decides what will be produced by whom. The market system is economic democracy-- money given you the right to vote for the goods of your choice. Consumers and customers write the economic plan of market allocation systems with their purchase decisions and purchase intention. The United states, Western Europe and Japan are predominately market allocation systems.
HOW MANY TYPES OF ECONOMIC SYSTEMS IN GLOBAL MARKET
The clear superiority of the market allocation system in delivering the goods and services that people need and want has led to its expansion to the former socialist block.