The primary types of economic systems are the market economy, planned economy, mixed economy and traditional economy. There are also secondary economic systems that play a role in some situations. However, while an economic system may claim to be part of a new thought pattern, most closely follow one of the primary systems mentioned.
A market economic system is a system that has no centralized planning by the government. Products are bought and sold by individuals who have a direct interest in the transaction, either as a supplier or a consumer. Price is determined by the supply and demand for a certain product and will not normally go beyond some accepted parameters. When it does, it usually comes back into equilibrium. Market economics is often commonly referred to as capitalism.
The opposite of a market economic system is a planned economic system. In this type of economy, the government or some other centralized body, usually closely linked to the government, makes decisions on production and consumption, to a certain extent. Those governing a planned economy may also set prices and manage to the economy down to when goods and services may be produced or offered for sale. Communism and socialism are common types of planned economies.
A mixed economic system encompasses traits of many different economies, most commonly market and planned economies, to come up with a solution that works for everyone. In most cases, countries employ a mixed economic model. While some may tend to be more market and others more planned, some feel there is some regulation needed, but also some freedom for the suppliers and consumers to have some flexibility as well.
The other type of economic system that may be employed some places in the world is known as a traditional economy. In this economy, the producers are usually also the consumers. Those producers usually make enough for themselves and families. In the event of a surplus, goods and services may be bartered with others. This is a very primitive type of economy and not one in use in any industrialized nation -- at least not on a large scale.
Other types of economic systems include the participatory system, the information system and even the virtual system. While it may be hard to build an entire country or system of buying and selling goods on these types of economies, they can still play an important role. In fact, these types of systems are responsible for producing billions of dollars in economic activity each year.