TYPES OF ECONOMY

The three types of economy are:

1. Planned economy
2. Market economy
3. Mixed economy
The differences between the three types of economies are:
The planned economy is when the government has control of the society
and makes all the decision. The difference between the planned
economy and the marketing economy is that the marketing economy
doesnt have a fixed amount of products which they have to make. The
market economy is when the governments role is limited to providing
legislation to protect businesses and consumers and making sure no
single business or organisation restricts competition. The planned
economy cant afford any luxury items such as mobile phones and prices
are fixed by the government. There is no competition in the planned
economy because of the control that the government has over them. The
mixed economy is a combination of both planned and the market
economy. The mixed economy shares similar attributes to both planned
and market economy because the government controls some of the
resources and the market controls the rest which means that both
government and businesses have control.