In our day-to-day lives, economics is crucial. It enables us to study previous, future, and current strategy, as well as apply these models to nations, governments and people. Do you know what this pandemic Covid-19 has had the most impact on? Of course, many people’s lives and livelihoods are at risk. Apart from that, it had a negative impact on the economies of many countries.

Almost everyone has heard that our GDP has decreased due to this issue; to keep the stability of any nation’s economy in this difficult time is very hard. Poverty, unemployment, corruption, criminal activity, and other issues result from an unstable economy.

You now have enough knowledge of how the economy and the study of economics are critical for a country’s development. To properly understand these ups and downs, you must have a thorough understanding of economics and economics assignment help. Let’s start with a basic economics word.

Economics-

The social science of economics is related to the production, allocation, and usage of goods and services. It investigates how people, governments, corporations, and countries allocate resources. From our own homes to the rest of the world, economics is present. Economics plays a significant role in a country’s development.

Economics is studied in two categories:

1. Macroeconomics is concerned with the overall behaviour of the economy.

1. 2. Microeconomics is the study of individuals and businesses.

Types of Economics-

Every economy in the world is distinct from the others, despite the fact that they share many characteristics. Economists distinguish four types of economics.

Let’s examine each one separately.

1.   Traditional Economy:

As the name shows, it is based on old or conventional economic techniques. It is one of the most fundamental types of economics, and it is based on historical approaches. Traditional economies search for the goods and services connected with their norms, values, and hist

ory.

Agriculture, livestock, fishing, and herding are examples of traditional economies. This branch of economics investigates the economics of certain tribes and families. Rather than using money or currency, it uses the barter system. Initially, In the old economy, people were more focused with creating the product or seeing the amount they required, so there was no concept of trading.

However, as time passed, the old economy grew, and people started cultivating more crops and initiating crop trading. The traditional economy was transformed into a traditional mixed economy as a result of this transition. That was the first time they encountered money or currency, and they were familiar with the concept of exchange. Traditional mixed economies currently exist throughout Africa and the Middle East.

2.   The economy of the Free Market:

The free market operates without government intervention. It is completely dependent on the free market and current trends. To put it another way, neither buyers nor sellers are required to follow the regulations.

The law of demand and supply governs this form of economy. A free-market economy is one in which the rich become richer, the poor get poorer, and there is money or capital imbalance. The free-market economies of the United States and Hong Kong are examples.

3.   Mixed Economy:

It is a hybrid of market and command economies. This is one of the most popular economic theories. Because it is a perfect blend of socialism and capitalism, this system is known as the Dual Economy. Despite the fact that a mixed economy is free of government intervention, the ruling power will control and oversee sensitive areas like transportation and military.

This Economy permits enterprises to develop independently of government intervention. In a mixed economy, both the public and private sectors can expand at the same time. The mixed economy is used by the majority of countries. The best examples of a mixed economy are India and France.

4.   Command Economy:

The central power (Government) makes economic decisions in a command economy. The government decides what will be produced and in what quantities. Furthermore, the ruling power, not market forces, has the authority to fix prices.

The command economy is the reverse of the free market in plain terms. It is also known as government controlled since the government controls all economic activities. The government monopolises all sectors and enterprises. As a result, the market is empty of competition.

All these are important types of economics every learner should know.

Conclusion-

The economy, as a whole, is a system for checking:

• how much resources we have,
• how to best use them,
• what we want to create or in what quantity,
• how to distribute these resources among the population, and so on.

In this blog, we’ve examined economics and the 4 main types of economics that disclose the various characteristics of various economies. The majority of countries rely on a combination of two economic systems. I hope that this blog will help you in better understanding the various economic systems and which countries are dependent on which system.