Explain how economics system attempt to allocate and make effective use of resources?

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Aishwarya Singh Profile
Aishwarya Singh answered
The way how a country decides what to produce, how to produce and for whom to produce to allocate its resouces in the most effective way is known as its economic system. There are 3 main types-
Free market- Producers and firms decide what to produce how to produce and for whom to produce. Market demand determines the allocation of resources
Planned economy- Government takes the necessary decisions
Mixed economy- Both the private organizations and the government decide what to produce, how to produce and for whom to produce.

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