Economic Systems: There are four broad types of economic systems: market, command, mixed, and state-directed .

In reality almost all are mixed to some extent, for even the most market oriented systems have some governmental controls on business and even the most command based systems either explicitly allo some free markets to exist or have black markets for some goods and services. !et, all countries can be considered to be at some point on a continuum bet een pure market and pure command. "arket economy : In a pure market economy, the goods and services that a country produces, as ell as the #uantity in hich they are produced, is not planned by anyone. $ather price and #uantity are determined by supply and demand. %ommand economy : In a pure command economy, the government plans hat goods and services a country produces, the #uantity in hich they are produced, and the price at hich they are sold. "ixed economy :& mixed economy includes some elements of each. In %anada, for example, hile most business is privately o ned and operated under market principles, health care, electrical po er, and li#uor distribution are run by state o ned enterprises in most provinces. State-directed economy In a state-directed economy, the government plays a significant role in directing the investment activities of private enterprises through 'industrial policy.( )oth *apan and South +orea are often cited as examples of state-directed economies.

,olitical Systems -efinition: ,olitical system refers to the system pf .overnment in a nation. The economic and legal systems of the country are often shaped by its political system. There are t o separate polarities to consider hen discussing political systems: collectivism vs. individualism and democracy vs. totalitarianism. -emocratic or totalitarian .These t o dimensions are interrelated, systems that emphasi/e collectivism tend to be totalitarian hile, systems, that pace a high value on individualism tend to be democratic. %ollectivism vs. individualism %ollectivism: -efinition: political system that stresses the primacy of collective goals over individual goals. The system, hich advocates %ollectivism, is called socialism and these activists are called socialists. Socialism: Socialism roots from the intellectual lessons from +arl "arx 01212-12234. "arx5s basic argument is that in a capitalist society here individual freedom is not restricted, the fe benefit at the expense of many. "arx advocated state o nership of the basic means of production, distribution and exchange 0business4. 6is point is that if the state o ned the means of production, the states could ensure that the orkers ere fully compensated for their labor.

Individualism: This is the opposite of collectivism. Individualism refers to a philosophy that an individual should have the freedom in his or her economic and political pursuits. Individualism focuses on 014 guaranteeing individual freedom and self-expression, and 074 letting people pursue their o n economic self-interest in order to achieve the best overall good for society. -emocracy 8s. totalitarianism -emocracy: -emocracy refers to apolitical system in hich the government is by the people, exercised either directly or through elected representatives. Totalitarianism: Totalitarianism is a form of .overnment in hich one person or political party exercises absolute control over all spheres of human life, and opposing political parties are prohibited. There are four ma9or forms of totalitarianism: communist, theocratic, tribal, right ing 0often military4.