There are 3 types of economy system in this world and they're Free Market, Planned (Command Economy) and Mixed Economy. 

Free market is basically a system where all the FOPs are produced and sold by private sectors only and with a little bit of government intervention involved as well. Countries that are currently using this system are Hong Kong, USA and Canada(haha it's in the econs notes book too lazy to find the others) Well, a market system allocate their resources by using the term price mechanism (Supply and demand). They decide on what to produce by knowing what the consumers want. Knowing what's the trend in the market is very important for every producers.Having these information will help them gain more costumers and earn more profit from their production. They tend to reduce their cost of production as much as possible in order to gain more profit too. Sometimes, due to saving more cost, they're not employ more workers if it does not contributes anything to the firm, Unemployment rate will go higher. The rich will be become richer, the poor will become poorer due to lost of jobs. In a free market, competition is very high. Many companies will try to be the best in market and this creates growth to many firms. Competitions help firms to be more innovative and hard working as well. They'll produce more variety of G&S and this benefits the consumers to have many choices of G&S when they're buying. Besides, the growth of the economy will increase as will due to the efficiency of production which increases the GDP of the country. The bad part of a market system is that many firm are so focused on making profits that they don't care about the social effects of the environment. Over consumption of demerit good will happen and the pollution as well. Private sectors are not able to provide merit and public goods too and these two goods are very important to the community. Although, free market may create growth to the economy so a short while but the in long run the country will have huge gap between the rich and the poor. This creates more mess and it's not fair to the others who don't get to enjoy. 

Planned economy is where all the FOPs are controlled by the government. Countries that are planned are Cuba, Libya and  North Korea. The government decide on what to produce, how to produce and whom to produce. The government produces goods and services based on social cost and social benefits. They'll provide free health care, education and transport system if the poor can't able to afford them. Under a command economy, theoretically unemployment does not exist. Government would make sure that the distribution of wealth is equal for everyone. Since government are the ones who decide on what to produce, they're not as efficient as private firm because their main aim is not to gain profit but to reduce unemployment. Therefore, they might produce too much on certain goods and resources are wasted. The goods and services provided will have poor quality due to lack of competition which means low innovation.Consumers are not be able to have a variety of G&S to choose and economic growth might be slow as well. 

Mixed Economy is the combination of both Free and Planned economy. The FOPs are partially owned by private sectors and partially owned by government. the best of both worlds! Government is there to set rules and regulations to reduce market failure, where as private sectors get to spice up the economy. Both economy have their own part to play and the combination is perfect, that's why most countries are mixed. 

Transition economies is one that is changing from planned to free market. For example China, Poland and Bulgaria. Many firms will be privatized and a financial sector will be formed. They're have to face some problems in the future such as unemployment, inflation, negative economic growth and unfavorable balance of payment (import>exports). 

SPECIALIZATION 

Specialization is known as division of labour. It's a system of organization where individuals or nations are not self sufficient but concentrate on producing certain G&S and trade the surplus with others. Division of labour increases the efficiency and productivity of  the production. Since more G&S are produced the rate GDP has increased as well which stimulates the growth of the economy. Besides, the national income increases too which means the living standards of the nation will be better. This is an overall picture on what happens when division of labour occur. Sometimes is not always good for a country or an individual to be specialized on producing a certain good. This is because they are not able to change jobs, they'll also be bored if they kept doing the same thing, people or the country will become too dependent on each other. A change in technology will effect the previous labours who specialized on producing the previous goods. Unemployment level be increased as well as these labour can find any other job to do. the GDP WILL DECREASEEEEEEE!! wohoooo!! 

MONEY

• Medium of exchange 
• store of value 
• measure of value
• a standard of deferred payment 

The characteristics are:

1. portable 
2. durable 
3. divisible 
4. scare 
5. difficult to forge 
6. acceptable by all 

Liquidity: The assets that easily can be converted into cash (gold diamond, stocks) 

Intrinsic value: It naturally has value in it. e.g: Gold, Diamond.