suggested rigidbody2d types to use? blocks and balls

The blocks should also be static unless you intend for them to move; this will also improve performance.

The balls should be dynamic if they are moving via forces or you directly setting the velocity of them. If you are controlling the position of them yourself by modifying the Transform.position and Transform.rotation them you should use a Kinematic body-type. If using Kinematic then you should also turn on the Rigidbody2D.useFullKinematicContacts which gives you full collision contact callbacks when Kinematic touches any body-type. Otherwise, Kinematic only contacts Dynamic.

If you don't want balls to collide with each other then place them on the samer layer and go into the 2D physics settings, specifically the layer collision matrix and uncheck the box which controls the ball layer colliding with itself.

Note: Ensure you use the 2D physics settings and not the 3D physics settings, both of which have their own layer collision matrix.

Layer Based Collision