Economic system facts for kids

An economic system is a man-made and malleable system to regulate the 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

• 

  Common typology for economic systems categorized by resource ownership and resource allocation mechanism