Overview – Economic systems

We have seen that the economic problem is about what, how and for whom to produce. Every society has different solutions to these questions which are dictated by the particular society's economic system. An economic system provides the framework for the allocation of resources, production of goods and services and the distribution of goods and services. In other words, the economic system of each society is the framework for answering the "what", "how" and "for whom" questions in that society.