The economic system can be broadly categorized into
a) Capitalism Capitalism is a system of economic organization characterized by the private ownership and the use of capital with a profit motive. The most important feature of capitalism is the existence of private property. Everyone has the freedom to form any firm anywhere he likes, provided he has the requisite capital and ability. It is based on the doctrine of laissez-faire which would mean that the state interference in economic activity should be kept down to the minimum. Top Characteristics 1. Two-class system : Historically a capitalist society was characterized by the split between two classes of individuals—the capitalist class, which owns the means for producing and distributing goods (the owners), and the working class, who sell their labor to the capitalist class in exchange for wages. The economy is run by the individuals (or corporations) who own and operate companies and make decisions as to the use of resources. But there exists a “division of labor” which allow...