Types of Economic Systems

1) Traditional Economies - It's an economic system that have a strong social network as well as tools and methods. It's often connected to subsistence farming which means that you grow enough income to be stable rather than a large amount. In other countries, it's mostly replaces by command and mixed economy.

2) Centrally Planned (Command) Economy - This is an economic system where the state or government controls all of the factors and makes all the major decisions about their use and the amount of gross income they earn. The planneres decide what should be produced and command certain enterprises to produce those goods.

3) Market Economy - another economic system where the production and distribution of goods is controlled by free markets guided by a free price system rather than a planned economy where things are run by the state and/or government. In market economies different businessess decide what they want to buy produce. It has no central coordinator guiding the operations and usually goes hand in hand with self interest.

4) Mixed Economy - a mixed economy is an economic system that contains both private owned as well as state owned companies and also mixes elements like capitalism and socialism. Countries like United States, Canada, Cuba and others take part in mixed economies.

-What is the difference between communism and socialism?
Answer: The difference between communism and socialism is that in communism, the country controls all aspects of how the governed live and they have to live under the dictator's rules and regulations such as in Cuba. In socialism, a certain part of the government has control only on their economy and are responsible for the inports and exports. So communism is taking over all aspects and socialism is only economically taking over.