There are three
types of Economy:
1. Capitalist Economy: -In a capitalist economy, means of production
are owned and managed by private individuals. The main motive of producers is
to maximize profits in a capitalist economy. For e.g. U.S.A.
2. Socialist Economy: -In a socialist economy, society as a whole
collectively owns the factors of production. So the means of production are
owned and managed by the Government. Its main aim is to maximize social
welfare. For e.g. China.
3.
Mixed Economy: -It is a co-existence of both, public and
private sector. In this case, means of production are owned and managed by the
government as well as private individuals. For e.g. India.
