ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Theoretically, it may refer to an economic system that combines one of three characteristics: public and private ownership of industry, market-based allocation with economic planning, or free markets with state interventionism.

Detailed explanation-2: -Money is used to facilitate exchanges in market economies, but not command economies. The government makes all decisions about resource allocation in a market economy. Resources are owned by private individuals, rather than by the government, in a market economy.

Detailed explanation-3: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.

Detailed explanation-4: -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.