What are the two types of economic system?

The two major economic systems in modern societies are capitalism and socialism. In practice most societies have economies that mix elements of both systems but that lean toward one end of the capitalism–socialism continuum. Social democracies combine elements of both capitalism and socialism.Click to see full answer. Similarly, what are the types of economic system?The 4 Types of Economies. The way scarce resources get distributed within an economy determines the type of economic system. There are four different types of economies; traditional economy, market economy, command economy and mixed economy. Each type of economy has it’s own strengths and weaknesses.Secondly, what are the 3 different types of economic systems? Economists generally recognize three distinct types of economic system. These are 1) command economies; 2) market economies and 3) traditional economies. Each of these kinds of economies answers the three basic economic questions (What to produce, how to produce it, for whom to produce it) in different ways. Accordingly, what are the 2 types of economic systems? There are three main types of economies: free market, command, and mixed. The chart below compares free-market and command economies; mixed economies are a combination of the two.What is the best type of economic system?A traditional economic system is the best place to start because it is, quite literally, the most traditional and ancient type of economy in the world. There are certain elements of a traditional economy that those in more advanced economies, such as Mixed, would like to see return to prominence.