According to wikipedia, a market may be of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade and goods and services are exchanged, forming part of the economy. The basic concept of market is any structure that allows the exchange of goods, services and information. In market there are the buyers and the sellers. Markets vary. There are financial markets, prediction markets, and so on. Market can be seen in two ways: as a study of abstract mechanism whereby supply and demand meet and deals are made. And second it is used as a symbol of an integrated and cohesive capitalist world economy.
Market system is any systematic process enabling many market players to bid and ask. They help bidders and sellers interact and make deals. Because a market system relies on the assumption that players are unequally enabled, a market system is distinguished specifically from a voting system where candidates seek the support of voters on a less regular basis.
An economic system is a system used to allocate resources because resources are limited. An economic system can be defined as a basic means of achieving economic goals which is inherent in the economic structure of a society (B.B.G Dictionary of Business Terms, 1987).
The major function of an economic system is to work out the basic economic problems which are; *What is to be produced, *How is it to be produced, *For whom to produce and *How efficient is the use of resources. These economic problems are caused by the fact that resources are limited but human wants are unlimited. Therefore, every country desires to adopt an appropriate system which will result in efficient allocation of resources so as to avoid scarcity.
There are three major systems adopted which are; Command Economic System,