ECONOMIC SYSTEMS An economic system is an accepted way of organizing production, establishing the rights and freedom of ownership, using productive resources, and governing business transactions in a society. There are three basic types of systems: (1) the government can produce almost all the goods and services (a planned economy); (2) private enterprise can produce almost everything (pure capitalism, found only in textbook examples); and (3) there can be some government production and some private production (a mixed economy). No economy is entirely privately owned, but a few (e.g., the People's Republic of China and Cuba) are almost entirely government owned. The United States is a mixed economy, with about 90 percent of production provided by the private sector. Private versus state ownership percentages for 18 countries are illustrated in Figure 1.2. Compare India, Austria, Canada, and the United States on degrees of ownership, and you will find some noticeable differences. (未完待续)