An economic system is the method by which societies or governments organize, allocate, and distribute resources, goods, and services within a geographic region or country. It regulates the factors of production such as land, labor, capital, entrepreneurs, physical resources, and information resources to meet the needs of the population

. Economic systems address fundamental economic questions:

• What goods and services shall be produced and in what quantities?
• How shall these goods and services be produced (by whom and using what resources)?
• For whom shall goods and services be produced (how will they be distributed)?
• When should production occur to meet demand optimally?

They encompass institutions, agencies, decision-making processes, and consumption patterns that define the economic structure of a community

. There are four main types of economic systems:

• Traditional economies, based on customs and resource availability
• Command economies, centrally planned and controlled by the government
• Market economies, driven by private individuals and market forces
• Mixed economies, combining elements of government control and private enterprise

In essence, an economic system is a social system that solves the problems of production, distribution, and consumption of goods and services, ensuring resources are allocated efficiently to sustain the community's way of life