Answer:
An economic system is a set of rules and regulations that govern economic activity in a society. Different types of societies have different economic institutions that reflect different economic systems of the society.
Step-by-step explanation:
In a capitalist society, the economic system is primarily based on private ownership of the means of production and the free market. The system is characterized by private firms competing to produce goods and services and to make a profit.
In socialist societies, the economic system is based on public ownership of the means of production and the central planning market. Governments are responsible for controlling the production and distribution of goods and services.
In a mixed economy, the economic system is a combination of capitalist and socialist models. This type of economy is characterized by both private and public ownership of the means of production and the use of both free and government-controlled markets.
In traditional societies, the economic system is based on subsistence farming, hunting and gathering. This type of economy is characterized by a lack of formal economic institutions and economic activity is organized primarily through informal networks of family, friends and neighbors.
In a planned economy, the economic system is based on central planning of the economy and government control. This type of economy is characterized by top-down management of the economy