Answer to Question #280183 in Microeconomics for rue

Question

Identify using examples the three types of economic systems

Answer 1

The three types of economic systems in the world are command, market, and mixed economies.

A market economy is one in which the production and prices of goods are determined purely by demand and supply factors.

Private sector businesses are encouraged. There is no government intervention and price control.

The market has numerous buyers and sellers. In a command economy, production and prices are controlled by the government.

Most of the resources and businesses are owned by the government. A mixed economy is a combination of command and market economies.

Private businesses are promoted, but the government intervenes for social objectives.