Answer to Question #44964 in Microeconomics for Abdulla Sabit

Question

Identify the economic system that exists in each of the following countries at the moment:China,Russia,Cuba,UK,U.A.E,U.S.A,Bangladesh and Iran.

Answer 1

In all of these countries, except Cuba there is mixed economic system, but in Cuba there is a command planned economic system.
A planned economy is the economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a public body such as a government agency. Although a planned economy may be based on either centralized or decentralized forms of economic planning, it usually refers to a centrally planned economy.
A mixed economy is commonly defined as an economic system in which both the private sector and state direct the economy, reflecting characteristics of both market economies and planned economies.[1] Most mixed economies can be described as market economies with strong regulatory oversight and governmental provision of public goods. Some mixed economies also feature a variety of state-run enterprises.