Dear readers welcome to Awareness Adda. Myself Sudheer CEO of the Awareness Adda. In the previous article, we discussed an introduction to Indian Economy. today we are going to discuss Types of Economic System. as per the previous article already we knew that there are 4 primary types of Economics. here we go..!
What is Economics?
It is the branch of knowledge concerned with the production, consumption, and transfer of wealth.
Types of Economic System:
There are four primary types of economic system in the world those are given below.
- Traditional Economic System.
- Command Economic System.
- Market Economic System.
- Mixed Economic System.
Traditional Economic System:
- It is most traditional and ancient type of economy in the world.
- Products and services that are a direct result of their beliefs, customs, traditions, religions etc produced in this system.
- there are certain elements of a traditional economy that those in more advanced economies, such as mixed.
Command Economic System:
- In terms of economic advancement, the command economic system is the next step up from a traditional economy.
- The most important feature of this system is that a large part of the economic system is controlled by centralised power, often, a federal government.
Market Economic System:
- A market economy is very similar to a free market.
- The government does not control vital resources, valuable goods or any other major segment of the economy.
- In this way, organisations run by the people determine how the economy runs, how supply is generated, what demands are necessary. etc
Mixed Economic System:
- A mixed economic system also is known as a Dual Economy.
- It is a combination of economic systems, but it primarily refers to a mixture of a market and command economy.
- In this mixed economic system, the market is more or less free of government ownership except for a few key areas.