Definition of Economic System - SS1 Economics Lesson Note

An economic system is a set of rules, institutions, and practices that determine how goods and services are produced, distributed, and consumed in a society. It is a way of organizing resources and allocating them to meet the needs and wants of individuals and groups within that society. The main purpose of an economic system is to allocate resources and distribute goods and services in a society. 

Economic systems vary in terms of their level of government intervention, ownership of resources and means of production, and distribution of wealth and income. Some of the most common economic systems include capitalism, socialism, communism, and mixed economies. Each system has its own strengths and weaknesses and is designed to achieve certain economic and social objectives.