Economic systems are organized sets of procedures used within communities or between communities to govern the production and distribution of goods and services. There are three basic types of economic systems: Communist, Free Enterprise, and Socialist. In this lesson, you will examine all three types of economic systems; determine how economic decisions are made, and how they impact their respective communities. Keep in mind another, more informal economic system exists, a mixed economy. It is any combination of the characteristics from any or all three of the main economic systems.

Understanding the different economic systems that exist in our world is very important. This information even impacts government spending and determines how countries trade with each other. In the United States, The Central Intelligence Agency compiles information about every country in the world. This helps the United States when our government plans for trade, aid to countries, and even possible conflicts. By the time you finish this lesson, you will be a Super Student Agent.

Click on the CIA seal below to find out more about the World Factbook which will be your primary resource for this lesson.

Source: CIA Seal, Wikipedia.