Question

Describe the three types of Economies giving relevant examples

Answer 1

there are 3 types of economies :

1) command 2) market 3) traditional

in a command economy, the government decides how much of the goods to produce, for whom to produce, when to produce. the government is a central feature ,as such the government is involved in all the major decisions. the major industries, rails, roads are owned by the government. the government makes it possible to create jobs and adequately supply essential resources to all.

china is an example of a command economy.

in a market economy, the individual decides what to buy or sell . buyers and sellers exchange goods and services. government has little role to play in a market economy. the major decision makers are the individuals. in this type of economic system, not the government but the people decide which goods to produce that will be the most profitable. the individuals pay the highest price for the goods they require. due to people production happening as per demand in the product , there exists fierce competition among the industries producing goods

no free market economy exists in this world, however Hong kong has been seen as a free market economy.

traditional economy : the traditional economy is the most ancient form of economy. these kinds of economies lack access to technology and modern facilities. these economies are very close knit. here, every member has a designated role. our age old tradition and custom is preserved in a traditional economy. today it is difficult to find traditional economy except for some isolated tribes in the Amazon.