What are the types of economic systems?

Basically, we can classify economic systems into four main types.

First, you have the traditional economy. It’s based on customs and barter. Think of old agricultural societies. Then there’s the command economy, where the government makes all the big decisions about production and prices.

On the other end is the market economy, driven purely by supply and demand with private ownership. Finally, and most commonly, there's the mixed economy. This is a blend of market and command principles. The government and private companies both have a role. India, for instance, is a classic example of this. In reality, most modern nations have a mixed system to some degree, just with different levels of government intervention.