(A) CAPITALIST
Eg: USA

Factors of Prod'n
are in Private Hands

Merits:
- No Govt. intervention/Interfere
- Freedom to Enterprise

Demerits:
- Profit motive
- High competition

(B) SOCIALIST
Eg: China

Factors of Prod'n
are in Govt. Hands

Merits:
- Welfare is the motive

Demerits:
- Low efficiency
- No freedom to Enterprise

(C) MIXED ECONOMY
Eg: India

In the hands of Govt. & Private

Eg: Tata, Birla, PSUs

Central Economic Problem
- What to Produce?
- How to Produce?
- Whom to Produce?