Economic system

There are a number of ways in which a government can organize its econ-omy and the type of system chosen is critical in shaping environment in which businesses operate.
An economic system is quite simply the way in which a country uses its available resources (land, workers, natural resources, machinery etc.) to satisfy the demands of its inhabitants for goods and services. The more goods and services that can be produced from these limited resources, the higher the stan-dard of living enjoyed by the country's citizens.