Free market Economy: In this type of economy, the capitalist, businesses, firms, and individuals can make their own decisions regarding the production, supply, and growth of their wealth. It is usually seen in democratic countries.n2. Command Economic: Here, a central governing body makes policies and decisions regarding the people's economic growth.n3. Mixed Economy: A mixed economy is a blend of free and commands Economy characteristics. It is the most common type of economy seen around the world. Pakistan has a diverse economy at present.