TYPES OF ECONOMY (अर्थव्यवस्था ) | SSC CGL 2023 lakshya series | Indian Economics by Manisha Ma'am

Introduction

This tutorial provides a comprehensive overview of the different types of economies as discussed in the video by Manisha Ma'am on the Digital Tyari channel. Understanding these economic systems is crucial for anyone preparing for competitive exams like SSC CGL, as it forms a significant part of the Indian Economics syllabus.

Step 1: Understand the Concept of Economy

• An economy refers to the system by which goods and services are produced, distributed, and consumed.
• Different economies function differently based on how they manage resources and respond to consumer needs.

Types of Economies

1. Traditional Economy

   • Relies on customs, history, and time-honored beliefs.
   • Economic decisions are based on social and cultural practices.
   • Common in rural and farm-based communities.

2. Command Economy

   • The government or central authority makes all economic decisions.
   • Controls resources and dictates production and pricing.
   • Examples include North Korea and Cuba.

3. Market Economy

   • Decisions are made based on supply and demand.
   • Prices are determined in a free price system.
   • It encourages competition and innovation.

4. Mixed Economy

   • Combines elements of both market and command economies.
   • The government and private sector coexist in economic decision-making.
   • Most modern economies, including India, are mixed economies.

Step 2: Analyze the Features of Each Economy

• Traditional Economy

  • Limited technology and low productivity.
  • Focus on subsistence farming and barter trade.

• Command Economy

  • Aims for equality but often leads to shortages and inefficiencies.
  • Limited consumer choices due to government control.

• Market Economy

  • High efficiency and innovation.
  • Income inequality may arise as wealth accumulation varies.

• Mixed Economy

  • Balances social welfare with economic growth.
  • Government intervenes in case of market failures.

Step 3: Evaluate Real-World Applications

• Explore how different economies affect daily life and government policies.
• Consider how economic types influence job availability, salaries, and business development.
• Analyze the impact of globalization on various economies, particularly mixed economies like India.

Conclusion

In summary, understanding the types of economies is essential for grasping the fundamentals of economic principles and their applications in real life. This knowledge will not only aid in your exam preparation but also enhance your perspective on global economic systems. Consider diving deeper into each type of economy for a well-rounded understanding, and explore how current events shape these economic frameworks.