Contrast the economic conditions you would most likely find in developing and developed economies. In a short paragraph, give two examples of conditions that are common in each type of economy.

Developing and developed countries have several characteristics that make them very different from each other. These differences are particularly found when we look at their economies.

For example, a condition that is common in developing countries is that of informal work. Many people work in jobs that are not legally regulated, such as cleaning services. Because of this informality, workers often lack labor rights and protections. Another common condition found in these nations is a lack of unemployment insurance. This lack of safety net often means that people are more at risk of becoming poor.

On the other hand, developed countries exhibit different characteristics. One example is the fact that developed countries tend to have higher paying jobs. This is because industries such as technology, engineering and science tend to be more developed. Another characteristic is that poverty tends to be less common.

The way scarce resources get distributed within an economy determines the type of economic system. There are four different types of economies; a traditional economy, a market economy, command economy, and a mixed economy. Each type of economy has its own strengths and weaknesses.

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