An organized way in which a state or nation allocates its resources and apportions goods and services in the national community.
Explanation:
What characterizes an economic system is the way in which the production and distribution of goods and services occurs by the population of a State. The main economic systems are capitalism and socialism.
In the capitalist system, the government aims to regulate and guarantee the conditions for the production to be made by the firms. In the socialist model, the government dictates the way production is done. This is an ideological difference. In the socialist system, the government intervenes and also produces. In the capitalist system, companies produce and the role of government is more in the sense of regulating and securing the environment conducive to private productive development.
