Basics of Economy
Any economy includes numerous bodies in a region that manufactures & consumes products, do business, investment and lot more. Modern economies are by and large identified as developing and developed economies. This is how people relate with economies is current scenario. However there are other different types of economies. Socialism is a function where trade, decisions and distribution is done by a body called government. This kind of set up has central line of decision for all various tasks like manufacturing and production. No private selling is allowed unless the government agrees to it.
Capitalism on the other hand is owned, functioned and ruled by private owners. Here government would only lay down guidelines for basic functions. Private owners are supposed to follow the guidelines. A mixed system of both capitalism and socialism is known as mixed economy. Continue reading