The growth-oriented definition of Economics was given by Professor Samuelson. He stated, “Economics
is a study of how people and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various persons and groups of society.”
In this article you are going to read different types of economy. An economy is a system which provides people with goods and services and directly or indirectly satisfies their wants.
An open economy is an economy which is involved in the process of production within its own country and participates in the production process anywhere in the world.
Agriculture is the main occupation in Agricultural economy. Agriculture constitutes a large share of the national income. Traditional techniques of production are used in this economy. Basic infrastructural facilities are absent. Examples of this economy: Brazil, Pakistan, Myanmar, Sri Lanka
Industry and trade are the main occupations in this economy. Agricultural share is less in national income. Modern and complex techniques of production are used in this economy. Infrastructural facilitates are well provided for in this economy.
A complex economy refers to a system wherein several kinds of goods are produced in large quantities. The process of production in these economies is highly complex and advanced. Money is widely used as a medium of exchange.
An underdeveloped economy is one in which the per capita income and the standard of living of the people are low. According to the World Development Report 2011, economies having per capita income of $995 or less are considered underdeveloped economies.
An economy which enjoys a high level of per capita income and a high standard of living is known as a developed economy. An economy is a system which provides people with goods and services and directly or indirectly satisfies their wants.
Mixed Economy refers to a type of economy wherein some important part of production is undertaken by the government, while some is left to private owners. Thus, it is a blend of both capitalist and socialist economies.
Socialist Economy refers to a type of economy wherein all the economic activities are controlled and regulated by a community or government so as to ensure welfare, achievements and equal opportunities to all the people of the country.