Question

Define economy. What are the various types of an economy?

Answer 1

An economy is a system of organizations and institutions that either facilitate or play a role in the production and distribution of goods and services in a society. Economies determine how resources are distributed among members of a society; they determine the value of goods or services; and they even determine what sorts of things can be traded or bartered for those services and goods.

There are four primary types of econimic systems in the world: traditional, command, market and mixed.