The three major types of economic systems are:



  1. Capitalism: In a capitalist economic system, individuals or private companies own and control the factors of production, such as land, labor, and capital. The market determines the prices of goods and services, and the government's role is limited to protecting property rights and enforcing contracts.

  2. Socialism: In a socialist economic system, the government or the public sector owns and controls the factors of production, and the allocation of resources is determined by central planning. Prices are often set by the government, and there is typically a greater emphasis on equality and social welfare than in a capitalist system.

  3. Mixed Economy: In a mixed economy, there is a combination of public and private ownership of the factors of production. The government plays a more significant role in regulating the economy and providing social services than in a capitalist system, but there is still a market economy where prices are determined by supply and demand.

The four degrees of competition in a private enterprise system are:

  1. Perfect competition: In perfect competition, there are many buyers and sellers, and no single buyer or seller can influence the market price. There is complete transparency in the market, and all firms sell a homogenous product.

  2. Monopolistic competition: In monopolistic competition, there are many firms competing in the same market, but each firm offers a slightly differentiated product. This differentiation allows firms to have some degree of market power, but they are still subject to competition from other firms.

  3. Oligopoly: In an oligopoly, there are only a few firms dominating the market, each with significant market power. This often results in price competition and strategic behavior by the firms.

  4. Monopoly: In a monopoly, there is only one firm that dominates the market, with complete market power. This can result in higher prices and reduced output, as the monopoly seeks to maximize its profits. In many countries, monopolies are regulated by the government to prevent them from engaging in anticompetitive behavior.