Category: Economic Systems
Capitalist Economy
A capitalist economy otherwise called as the free market economy can be defined as an economic activity, where the means of production are privately owned. Most of the economies over the world have enriched their economic system by implementing capitalist norm in the recent years. Here in such form of economy there is no Government interference.
The basic characteristics of such types of economic system are as follows:
Mixed Economy
Mixed Economy can be defined as a form of organization where the elements of both capitalist economy and socialist economy are found.
Simply in such type of economy there is the presence of private economic freedom with centralized planning with a common goal of avoiding the problems associated with both capitalism as well as socialism.
In this system the freedom in the economic activities are influenced by the Government’s regulation and licensing policies.
Economic Systems
Economists will often produce explanations for behavior within economic systems. The laws, patterns, and rules of economic theories are not universal laws of human nature; rather, they apply in certain economic systems where market participants understand established rules of trade.
Socialist Economy
In case of a socialist economy, the means of production and distribution are made by the public authority or the Government.
The basic characteristics of such types of economic system are as follows:
