What are the Various Types of Economy?

 ECONOMY and Its TYPES

Economy is a system by which people of an area earn their living involving themselves in economic activities. In every economy, economic activities such as production, consumption, investment, exchange etc. are controlled or regulated to some extent. However, the degree of control/regulation varies across nations. Based on the degree of controls/regulations of an economy, economies of the world have been broadly divided in to three economic systems as the following:

(A)Controlled or Centrally Planned Economy

(B) Free Market Economy

(C) Mixed Economy

Difference between the Three types of Economy
Centrally Planned Economy	Free Market Economy	Mixed Economy
These economies are firmly controlled by the government or some central authority	In these economies, economic activities are controlled by market forces i.e. demand and supply	Economic activities in these economies are governed by and large by market forces but are also partially regulated by the government.
Economic decisions are driven by the motive of social welfare.	Economic decisions are driven by the motive of profit maximization.	Economic decisions are driven by the motive of both social welfare and or profit maximization
The consumer is not sovereign.	The consumer is sovereign.	The consumer is sovereign however there exists certain mechanism controlled by the government to ensure supply of certain essential goods.
Most resources are controlled or owned by central authorities. Central authorities determine the price of the commodities.	Most resources are controlled/owned by private sector. The market forces determine the price of the commodity.	Resources are controlled both by the government and the people. By and large prices are determined by the market however government does regulate the prices of essential commodities.
Public sector dominates the economic activities.	Private sector dominates the economic activities.	Both public and private sector co-exists in the economy.