'ECONOMY ' denotes everything related to the manufacture and distribution of goods.Now what are goods?Goods are items and services that we need for a living,such as food,clothes, houses,cars,television sets,mobile phone,the list is end less.so are services like ,schools, hospitals,hotels, colleges ,cinema,haircut,bar, taxi services etc. In this type of economy ,only goods that are needed by buyers are supplied by the manufactures .If the supply is less than the demand ,it leads to price rise.Buyers can not afford to purchase goods ,as a result demand reduces and the prices come down..So ,the market regulates itself .This is the plus point of this economy.Most of the European countries and the USA has free market economy. In a ' managed economy ' ,the state decides ,the type and the amount of goods that will be produced .It a