Question

What are the three types of economies

Answer 1

[ Answer ]

1 - Command Economies

2 - Market Economies

3 - Tradition Economies

[ Explanation ]

Command Economies:

This is where production, investment and prices are all controlled and determined by the government. Command Economies are not controlled by free market. The Government decides how much a product should cost and what price they should be put for sale as.

Market Economies:

This is where the product prices and value are determined by the product keeper and/or seller. The seller decides how much they want to sell it for, not the Government. This also comes with supply and demand. Prices can increase or decrease as the seller wishes.

Tradition Economies:

This is where the economy relies on customs and history. They go by what has been done in the past and what has worked out before. Traditional Economies depend on farming, agriculture, fishing, and natural sources.

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