Humans need supply of food and other necessities in order to survive and prevail. The way through which humans manage and arrange their provisions is called the economic system. The oldest of all these systems is the barter system in which goods are exchanged without any proper currency involved. The three major contemporary economic systems are the market economy system, centrally planned economic system and mixed economic system.
The market economy system is a system where society or government has a lesser role in deciding about the way the system should be run or goods to be produced.
The process and the forces involved in the market are the key factors in determining and shaping the way of the system. Nearly all the Capitalist economies like the United States, United Kingdom, France and Japan are the examples of market economic system.
In the market economic system the individuals and the private sector has the right to own, run and expand business and property.
In planned economic system the society and government has the major role to decide about the trends and way the system should behave and get going. These systems focus on equal distribution of wealth and social justice. Most socialist and communist systems are based on this type of economic system. The former U. S. S. R was the key socialist economic country, while contemporary example socialist economies is Cuba.
Mixed Economic Systems are those systems, which were basically centrally planned economic systems, but they have compromised on some issues like private business and property ownership and have adopted some aspects of the market economy. Chinese economic system is the major example of mixed economy because even in China there are some regions where there is a complete market economic system like Hong Kong. While the country’s whole socialist economy has been altered to make it more compatible with the western market economies.