There Are Several Basic Questions That Must Be Answered In Order For An Economy To Run Satisfactorily 1 
There are several basic questions that must be answered in order for an economy to run satisfactorily. The scarcity problem, for example, requires answers to basic questions, such as: what to produce, how to produce it, and who gets what is produced. An economic system is a way of answering these basic questions, and different economic systems answer them differently. Many different objectives may be seen as desirable for an economy, like efficiency, growth, liberty, and equality.[6]
In a capitalist economic system (capitalism) production is carried out for private profit, decisions regarding investment and the use of the means of production are determined by individuals, corporations and business owners in the marketplace. The means of production are owned primarily by private enterprises and decisions regarding production and investment determined by private owners in capital markets. Capitalist systems range from laissez-faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the stated aim of ensuring "social justice" and a more equitable distribution of wealth (see welfare state) or ameliorating market failures (see economic intervention).
In socialist economic system (socialism), production is carried out to fulfill planned-economy objectives; decisions regarding the use of the means of production are adjusted to satisfy state-conceived economic demand, investment is carried out through state-guided mechanisms. The means of production are either publicly owned, or are owned by the workers cooperatively. A socialist economic system that is based on the process of capital accumulation, but seeks to control or direct that process through state ownership or cooperative control to ensure stability, equality or expand decision-making power, are market socialist systems.
The basic and general economic systems are:
Market economy ("hands off" systems, such as laissez-faire capitalism)
Mixed economy (a hybrid
In a capitalist economic system (capitalism) production is carried out for private profit, decisions regarding investment and the use of the means of production are determined by individuals, corporations and business owners in the marketplace. The means of production are owned primarily by private enterprises and decisions regarding production and investment determined by private owners in capital markets. Capitalist systems range from laissez-faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the stated aim of ensuring "social justice" and a more equitable distribution of wealth (see welfare state) or ameliorating market failures (see economic intervention).
In socialist economic system (socialism), production is carried out to fulfill planned-economy objectives; decisions regarding the use of the means of production are adjusted to satisfy state-conceived economic demand, investment is carried out through state-guided mechanisms. The means of production are either publicly owned, or are owned by the workers cooperatively. A socialist economic system that is based on the process of capital accumulation, but seeks to control or direct that process through state ownership or cooperative control to ensure stability, equality or expand decision-making power, are market socialist systems.
The basic and general economic systems are:
Market economy ("hands off" systems, such as laissez-faire capitalism)
Mixed economy (a hybrid