IndexTraditional economy 3Commanded economy 4Market economy 5Mixed economy 6Conclusion 7IntroductionAn economic system is the place where goods and services are produced, consumed and distributed. It is also how resources (also known as factors of production) are controlled in a nation. Economic systems aim to solve the three economic activities which are: “what should be produced? How should it be produced? For whom should it be produced?” Economic systems don't always work well, but they are often so large and complicated that it's truly wonderful that they work. There are four main economic systems: the traditional system, the command system and the mixed economy. These economic systems are generally recognized by economists, but they do not completely agree on the question of which system best addresses the challenge of scarcity. The traditional system IS shaped by tradition. The work people do, the goods and services they provide, the way they use and exchange resources, all tend to follow established patterns. In traditional economics, the interest of the community takes precedence over that of the individual. Individuals can be expected to pool their efforts and share the proceeds of their work equally. In other traditional economies, some sort of private property is limited by a strong set of obligations that individuals have towards their community (Shmoop Editorial Team, 2008). the same goods are produced and distributed in the same way by each subsequent generation. The production method and task of each participant are prescribed by custom. The economic system is not a priority in traditional economics. Usually, economic activity is secondary to religious and cultural values ​​(Mohr…… middle of paper……OP 2007. Economic concepts and methods. New Delhi: VK Enterprises.Harris, L. 1991. The Mixed economy of a democracy South Africa Investment Analysts Journal: 32-41.Shmoop Editorial Team 2008. Types of Economic Systems http://www.shmoop.com/economic-systems/types.html Date accessed: 7 May 2014Unknown economics http://www.flashmedia.glynn.k12.ga.us/webpages/dlandinguin/files/economic%20systems.pdf Date accessed: 6 May 2014Anderton, A. 2006. Economics South Asia: Darling Kindersley.Tucker, I. 2010. Survey of Economics: South-Western Cengage Learning.Prybyla 1969. New York Comparative Economic System: Meredith Corporation.