Economic systems are the means by which countries and governments organize and distribute resources. They determine how goods and services are produced, distributed, and consumed, influencing the overall economic health of a nation. Common types include capitalism, socialism, and mixed economies, each with its own approach to ownership and resource allocation. In a market economy, decisions regarding investment, production, and distribution are driven by supply and demand. This system encourages competition and innovation, allowing consumers to have a significant influence on the economy. Understanding these systems is crucial for analyzing global economic trends and policies.