Question

what are types of economies

Answer 1

In economy there are three types of sectors :- 1) Primary Sector 2) Secondary Sector 3) Tertiary Sector

Answer 2

The type of economy is mostly based on the degree of control.

There are three kinds.

• Controlled/Centrally Planned Economies
• Free/Market Economies
• Mixed Economies

1. Controlled/Centrally Panned Economies

• They're economies where the degree of control is very high.
• Activities are firmly controlled by the government.
• Social-welfare based.
• Consumers aren't sovereign.
• The resources are controlled by the government.
• Public sector dominates.
• North Korea, China and Russia are few examples.

2. Free/Market Economies

• They're economies where the degree of control is notional.
• Activities are controlled by market forces.
• Profit-maximization based.
• Consumers are sovereign.
• Most of the resources are controlled by people.
• Private sector dominates.
• USA and UK are few examples.

3. Mixed Economies

• They're economies where the degree of control is moderate.
• Activities are controlled by both the government and market forces.
• Both social-welfare and profit-maximization based.
• Consumers are sovereign.
• Resources are controlled by both the government and the people.
• Both Public and Private sectors dominate.
• India is an example.