Economic System refers to a country that conducts trade and business on a national and international level. Economics System has four important types:
Traditional System: It is the most basic form where goods are sold and purchased on the barter system.
Capitalism: It is characterised by an absence of governmental interference and regulation.
Socialism: It is the exact opposite of Capitalism. It has governmental intervention in public enterprises and evaluation of prices.
Mixed Economy: Mixed Economy refers to a system amalgamation of Capitalism and Socialism. It is characterised by the existence of both private and public enterprise, minimal government intervention, and both the government and private sector influence supply and demand policies.