There are three major types of economic systems. They are: 1. Capitalistic Economy (Capitalism): Capitalistic economy is also termed as a free economy (Laissez faire, in Latin) or market economy where the role of the government is minimum and market determines the economic activities. The means of production in a capitalistic economy are privately owned. Manufacturers produce goods and services with profit motive. Example USA, West Germany, Australia and Japan. Socialistic Economy (Socialism): The Father of Socialism is Karl Marx. Socialism refers to a system of total planning, public ownership and state control on economic activities. A Socialistic economy is also known as ‘Planned Economy’ or ‘Command Economy’. In a socialistic economy, all the resources are owned and operated by the government. Public welfare is the main motive behind all economic activities. Example: Russia, China, Vietnam, Poland and Cuba. Mixed Economy (Mixedism): In a mixed economy system both private and public sectors co-exist and work together towards economic development. It is a combination of both capitalism and socialism. It tends to eliminate the evils of both capitalism and socialism.In these economies, resources are owned by individuals and the government. India, Examples: England, France and Brazil.