Types of Economy Video Lecture | Indian Economy for State PSC Exams - BPSC (Bihar)

Ans. The different types of economies are: - Traditional economy: This type of economy is based on customs, traditions, and beliefs. It relies on agriculture, hunting, and gathering as the primary means of survival. - Command economy: In a command economy, the government has complete control over the allocation of resources and decision-making. The government determines what goods and services are produced, how they are produced, and who receives them. - Market economy: In a market economy, the production and distribution of goods and services are determined by the interactions between buyers and sellers in the market. Prices are determined by supply and demand. - Mixed economy: A mixed economy combines elements of both command and market economies. It allows for private ownership and market forces to operate while also having government intervention and regulation. - Planned economy: In a planned economy, the government controls all aspects of economic activity, including production, distribution, and prices. The government sets targets and plans for the economy to achieve specific goals.

Ans. A traditional economy is an economic system that relies on customs, traditions, and beliefs to determine the production and distribution of goods and services. In a traditional economy, people's roles and occupations are often determined by their family or community, and economic decisions are based on long-standing customs. Agriculture, hunting, and gathering are typically the primary means of survival in traditional economies.

Ans. In a market economy, the production and distribution of goods and services are determined by the interactions between buyers and sellers in the market. Market forces of supply and demand play a significant role in determining prices and allocating resources. In a market economy, individuals and businesses have the freedom to make economic decisions based on their self-interests. Competition among buyers and sellers helps to ensure efficiency and the availability of a wide range of goods and services.

Ans. A mixed economy is an economic system that combines elements of both command and market economies. In a mixed economy, there is private ownership of resources and businesses, allowing market forces to operate. However, the government also intervenes in the economy through regulations, taxation, and public spending. The government may provide public goods and services, maintain social welfare programs, and regulate certain industries to protect consumers or promote fair competition.

Ans. A planned economy is an economic system in which the government controls all aspects of economic activity, including production, distribution, and prices. In a planned economy, the government sets targets and plans for the economy to achieve specific goals. The government determines what goods and services are produced, how they are produced, and who receives them. This type of economy is often associated with central planning, where the government makes decisions on resource allocation and economic priorities.