An economic system is the sum of the ways and means by which people in a society choose to distribute their resources and provide for the production and consumption of goods and services. It is composed of institutions, rules, incentives, and decision-making processes which form the basis of the larger economic structure. Economic systems consist of the economic institutions, mechanisms, relationships and resources within a given country, region or other economic unit. These are determined by decision-making processes, and are shaped by individual, cultural, and institutional arrangements. Each type of economic system has its own particular advantages and disadvantages, so it is important to consider these when designing or assessing a system.

See also: complex system, systems theory, systems thinking, systems change, spiral dynamics