Indian Economy

Types of Economic Systems:

• Capitalist/ Market Economy: here individuals make decisions related to consumption and production. It is also called laissez-fair economy.
• State / Command Economy: here government/ state are the sole decision maker about the various aspects of economy. Example – erstwhile Soviet Union.
• Mixed Economy: both market and state complements each other. Most economies in modern world fall under this category.

Activities in an Economy:

• Primary Activities: related to nature i.e. agriculture, mining etc.
• Secondary Activities: adding value to primary goods such as manufacturing, construction etc.
• Tertiary Activities: different types of services (White Collar Jobs) such as banking, tourism, education etc.
• Quaternary Activities: information and R&D based
• Quinary Activities: it includes specialists, decision makers, consultant, policy formulators