Types of Economy

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Types of Economies
What is an economy?
An economy consists of the economic systems of a country or other area; the labor, capital, and land resources; and the manufacturing, production, trade, distribution, and consumption of goods and services of that area.
A market based economy may be described as a spatially limited social network where goods and services are freely produced and exchanged according to demand and supply between participants (economic agents) by barter or a medium of exchange with a credit or debit value accepted within the network.
Contemporary Capitalism is a market economy in which most of the production capacity is owned and directed by the private sector. Government role is limited.
On the other hand, traditional socialism is a command-based economy in which markets and the free exchange of goods and services, as well as manufacturing, production, trade and distribution are replaced or done by government central planning and state owned enterprises. In this economy all private owners of capital (called capitalist) and of land (called landowners) are not allowed or banned; and the only permitted private ownership is of consumption goods. Capital and land are assigned by the state and movement of labor is severely restricted. There are no profits, dividends, interest or rent. Labor compensation and benefits are decided by central planners.
Finally, a mixed economy contains elements of both capitalism and socialism which means a market based economy with a varied degree of government central planning and state owned enterprises.
Capitalist economy

Capitalism is an economic system that is based on private ownership of the means of production and the creation of goods or services for profit.
Capitalism is the system of raising, conserving and spending a set monetary value in a specified market. There are three main markets in a basic capitalistic economy: labor, goods and services, and financial. Labor markets (people) make products

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