Types of Economy

Type of Economy

• Capitalist economy.
• State or communist or command economy.
• Mixed economy.

Capitalist economy:

Under this economy, mode of production is owned by private individuals and there is no or less interference of government.  The US is the capitalist economy.

State Economy:

Under this economy, mode of production is owned by the government. Former USSR and Pre – 1985  China followed this type of economy.

Mixed Economy:

This is the mix of both capitalist and state economy. In this economy, both government and private players own the mode of productions. In this economy government actively participate in economic processes either directly or indirectly through regulations.