Economic system facts for kids

Kids Encyclopedia Facts

An economic system is a system of production, resource allocation, exchange, and distribution of goods and services in a society or a geographic area.

Trade, money, markets, banks, laws and regulations are all part of an economic system. Examples of economic systems include:

Market economy, where prices are decided by supply and demand.
State capitalism, where the means of production are organized and managed as state-owned business enterprises, and wages are decided by the government.

Images for kids

DiagFuncMacroSyst.pdf

Circulation model of economic flows for a closed market economy
Common typology for economic systems categorized by resource ownership and resource allocation mechanism
Marxist-Leninist Communist states (red) and former Communist states (orange) of the world

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Economic system Facts for Kids. Kiddle Encyclopedia.