nomies may be classified in a number of ways. A layman, for instance, may classify economies as rich and poor.In a rich economy, the per capita income and the standard of LIVING are very high, whereas in a poor economy like that of India, the per capita income is extremely low and the average citizen hardly gets two square meals a day.The economies can also be classified as simple or complex. A simple economy like that of an isolated Indian village is a self-sufficient economy. All the needs of the villagers are fully satisfied in the village itself. It has no trade with the outside world.ADVERTISEMENTS:The requirements of the people must be very few. Each family in the village may be carrying on what is called subsistence economy, i.e., producing enough of all goods to satisfy its own wants. For a long time, the Indian farmer carried on subsistence farming, i.e., producing for the family and not for the market. The economy of a modern town or city is an example of a very complex economy. Millions of people are crowded together in a small area and there are hundreds and thousands of occupations.There is extreme degree of specialization of products and. businesses, and no person can even DREAM of self- sufficiency. To be self-sufficient is considered neither desirable nor feasible. For the satisfaction of the wants of the people, millions of workers, producers and businessmen must co-operate.Goods have to come SOMETIMES from the farthest END of the world. Just think how many hundreds of people—producers of raw materials or paper industry, paper manufacturers, printers and the workers, the authors and the writers of hundreds of books they may have consulted, publishers’ representatives long chain of middle MEN and retail book­sellers—must have co-operated to place this’ book in your hands. Specialisation and co-operation that it necessitates in the form of mutual exchange are the dominant characteristics of a modern economy.