Share This Article:

Economic Definition of economic system. Defined.

Offline Version: PDF

Term economic system Definition: The assorted institutions that society uses to answer the three basic questions of allocation and address the fundamental problem of scarcity. Another, more popular term for economic system is economy. An economy, or economic system, is the structural framework in which households, businesses, and governments undertake the production and consumption decisions that allocate limited resources to satisfy unlimited wants and needs.


« economic science | economic thinking »


Alphabetical Reference to Over 2,000 Economic Terms