Leaving Certificate Geography Practice Test 2025 – Comprehensive Exam Prep

An economic system is a structure for allocating resources and distributing goods and services in a society. The three main recognized types of economic systems are mixed economies, traditional economies, and market economies.

A mixed economy combines elements of both capitalism and socialism, incorporating a variety of economic practices. Traditional economies are based on customs and traditions, often involving agriculture and barter systems, where economic decisions are made based on historical patterns. Market economies rely on supply and demand to determine the production and pricing of goods, emphasizing minimal government intervention.

In contrast, the term "autocratic economy" is not established as a distinct type of economic system within the standard classifications of economic systems. An autocratic system typically refers to a governance model where a single entity or leader holds significant power, which may influence an economy but does not define an economic structure in itself. Therefore, it does not fit within the traditional categorization of economic systems.