Question

On the basis of economies, we can divide countries into three groups.

Answer 1

The activities related to the production, distribution and consumption of goods and services in a specific region is called economy. On the basis of economies, countries are divided into three groups. Capitalist Economy, Socialist Economy and Mixed Economy.

1. Capitalistic Economy is a kind of economy in which the means of production is in the hands of the private sector, e.g. Germany, Japan, the U.S.A. 
2. Socialist Economy is a kind of economy in which the means of production belongs to the society i.e. the government’s control, e.g. China, Russia.
3. Mixed Economy is a kind of economy in which there is a co-existence of both private and public sectors, e.g. India, Sweden, the U.K.