ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.

Detailed explanation-2: -All economies must answer basic questions like what goods and services to produce, how to produce these goods and services, and how to distribute the goods and services – using their scarce resources.

Detailed explanation-3: -The four essential economic activities are resource management, the production of goods and services, the distribution of goods and services, and the consumption of goods and services.

Detailed explanation-4: -There are three main types of economic systems: command, market, and mixed. We will briefly describe each of these three types.