Alternative Economic System description briefly.

An economic system is a distinctive method of providing answers to the basic economic questions. It consists of all types of producers, consumers, government, laws, rules, regulations, customs, values etc. The systems differ in the way in which economic decisions are co - ordinated.

1) Traditional systems:
- The economic behavior is based primarily on tradition, custom, and habit.
- Use of traditional backward technology.
- Little change in the pattern of goods.
- Private property is not well defined, mostly common properties.

The answers to the basic economic questions are determined by traditions. Today only a few small, isolated, self sufficient communities still retain mainly traditional systems. 

Example : Different tribal communities of Bangladesh.

2) Capitalist systems/market systems:
In a market economy, the allocation of resources is the outcome of millions of independent decisions made by consumers and producers, all acting through the medium of markets.

Properties:
- Private property rights
- Laisez-faire: sovereignty for both producers and consumers
- Competition
- Profit motive
- Price system: an automatically functioning social control mechanism (or invisible hand)

The answers to the basic economic questions are determined by the market force.

3) Command systems/ socialist systems/communist systems:
- No private property rights.
- Economic behavior is determined by some central authority centrally planned economy.

The answers to the basic economic questions are determined by the central authority.

4) Mixed systems:
In practice, most of the economy is a mixed economy in the sense that it combines significant element of all three systems- traditional, command, and market- in determining economic behavior. The degree of mix differs between economies and between sectors of an economy.