Each society is faced with a problem concerning their economic state. The economic problem is that there are finite resources in relation to unlimited wants. This problem brings about the need for a system to answer questions (what, how, how much, who) that will solve it in the most effective way. An economic system is the organisational and institutional pattern through which choices are made about which wants to satisfy, and how to allocate resources to do this. The different economic systems include planned economies, market economies and traditional economies. …
