ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.

Detailed explanation-2: -Despite those philosophical and moral objections, almost all modern economic systems in the world today are mixed economies. While the globalization of the world economy limits government intervention in free trade, governments still retain mechanisms for social welfare exceptions to the free market rule.

Detailed explanation-3: -Most modern economies implement a mixed economic system. A mixed economic system brings the advantages of free markets and also government intervention.

Detailed explanation-4: -There are two types of mixed economies: The government sets up industries of its own and invests its own capital and purchases or hires the productive resources and takes the risk of profit or loss like an ordinary entrepreneur. There are also Joint Sector which is shared both by Private and the Public Sector.

Detailed explanation-5: -#1 – Partial State Control – The ownership of factors of production. #2 – Total Government Control – The state directly influences the functioning of the entities. #3 – Public-Private Control – There is a joint venture.