The three major types of economic systems are – capitalist, socialist and mixed economy. In capitalist economy two things are important. First is that owner of capital goods are mainly big business houses and private entities. Second is that the production of goods happens based on the market economy meaning the supply and demand cycle. It does not depend upon the central planning. In a socialist economy profit making is not the main motive but using the goods and services for the benefit of the general people. The ownership is cooperative here.