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Three types of economies exist in the world. These are market economies, centrally planned economies, and mixed economies. These economies are explained by our experts as follows.
The economy in which both the economies centrally planned and market economy characteristics are induced is known as mixed economies. A mixed economic structure can be found in countries like India.
When economic activities are planned and carried on by the central authorities of the country then it is known as centrally planned economies. The economic activities are run by the government and run by people working for the government.
When economies are governed by demand-supply market forces then it is known as a market economy. This type of economy is found in the US and here you can find different prize structures set by the organizations and Consumers who are willing to pay those prices. A market economy is also known as a free economy as there is no interference of the government in it.
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