Economy and types of Economy
Economy: A geographical area known as an Economy where some people earn their living by performing different economic activities. Like A teacher teaches, Doctor treats patients,to satisfy own needs. When people are less dependent to each other for their needs, is known as Simple Economy . But when the degree of dependence is high then it is called Complex Economy. At present we are living in complex economy, because our needs are very vast. Types of Economy 1-Centrally Planned Economy 2-Free or market Economy 3-Mixed Economy 1-Centrally planned Economy- These are those economy where maximum economic decisions are taken by some central authority or central government to keeping view in mind to maximize social welfare.Consumers are not sovereign in this economy. Public sector dominates the economy. Like Russia ,China(Before) Etc. (Economic decisions are mainly What to produce ,how to produce and for whom to produce) 2-Market or Free Economy: These ar...