What is an economy? Explain its …

It is as system in which people earn for a living and to satisfy their wants through process of production consumption investment and exchange .. there are three types of economy 1. Controlled or centrally planned economy : In this economy economic activities are controlled by government or some central authority. Public sector dominates the economic activity under this section motive behind every decision is social welfare. 2. Free economy or Market economy: These are the economies where the economic activity are controlled by the market forces and all the resources are controlled by the people . Private sector dominates the economic activities under this section motive behind every decision is profit. 3. Mixed economy: These are the economies where the economic activities are governed by the free play of market forces but are regulated by government both private and public sector dominates the economic activities . Motive behind every decision is both profit and social welfare