![]() ![]() Mixed Economy: Mixed Economy is a combination of a capitalist and socialist economy, wherein both markets and government decide the allocation of resources. ![]() ![]() In this economy, there is a central planning authority which decides the allocation of resources among the members of the community. Socialist Economy: In a socialist economy, the factors of production are collectively owned and controlled by the community, indicated by the State.Basically, private property is the foundation and profit motive is the driver of the capitalist economy. Capitalist Economy: In a capitalist economy (or free-market economy), all the factors of productions are under the ownership and control of private individuals for profit.There are three types of economies found in the world: What provisions are to be made by the relevant authority for economic growth?.Economics helps the nations in solving the major problems of the economy, which are: In finer terms, economy refers to the summation of all the methods that helps the individuals or governments in making an economic choice. The economy can be understood as the aggregate of all the arrangements for production, distribution, purchase, consumption and exchange of goods and services, and employment in a society or nation. Macro Economics: The arm of economics in which broad issues of the economy are studied, such as economic growth, unemployment, trade balance, poverty, the standard of living, inflation, etc.In short, it studies small parts of the economy. Micro Economics: The arm of economics which studies the behaviour and actions of individual economic agents, such as a person, a household, a firm, or an industry.It aims at solving the basic issue of scarcity of resources when the human wants are unlimited and there are alternative uses of the resources. In finer terms, economics takes into account how choice is made by individuals, families, firms, governments and nations, concerning the allocation of limited resources, to fulfil their unending wants, in such a way that maximum satisfaction can be derived. The way in which country's economic affairs are organized and conducted.Įconomics is an organized body of knowledge which studies the behaviour and activities of an individual, firm or nation which are related to maximize the satisfaction of wants or advance the welfare and economic growth, by optimum production, distribution, consumption and exchange of scarce resources, that have alternative uses. The way in which economic agents behave and interact and the way in which economies work. How resources are allocated among different members of society? How human beings make decisions when there is scarcity of resources? When a country or a geographical region is defined in the context of its economic activities, it is known as economy or economic system. Content: Economics Vs EconomyĮconomics is the science and art of decison making, regarding the use of scarce resources, under the conditions of scarcity, to attain maximum satisfaction. Let’s take a look at the article given below to understand the difference between economics and the economy. On the other hand, an economy indicates a region, a particular area or country, concerning production, distribution, consumption, and exchange of goods and services, and supply of money. ![]()
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