Traditional Culture Encyclopedia - Traditional culture - Three main ways of resource allocation
Three main ways of resource allocation
Habit mechanism, command mechanism, market mechanism.
1. Habit mechanism: In traditional society, habit is a common practice formed by people in social and economic activities, which is accepted and generally observed by people. It ensures the order and continuity of social and economic activities.
2. Command mechanism: A completely command economy or a centrally planned economy is a way for the government to allocate resources and control almost all social resources and decision-making power.
3. Market mechanism: In a market economy, the allocation of resources is determined by the competitive price system.
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