Briefly describe the main attributes of the following economic systems: market economy, centrally planned economy, and mixed economy.
I answered your first question earlier.
http://economics.about.com/od/howtheuseconomyworks/a/government.htm
A market economy is an economic system where most resources and production decisions are determined by the interactions of buyers and sellers in the marketplace. In this system, prices are set by supply and demand. The main attributes of a market economy include:
1. Private ownership: The majority of resources and businesses are privately owned by individuals or corporations.
2. Competition: Multiple producers and consumers compete with each other, leading to efficiency and innovation.
3. Profit motive: Individuals and firms are motivated by the pursuit of profit.
4. Limited government intervention: The government's role is primarily focused on enforcing contracts and ensuring fair competition.
A centrally planned economy, also known as a command or planned economy, is an economic system where the government or a central authority makes all major decisions related to production, distribution, and resource allocation. The main attributes of a centrally planned economy include:
1. Government control: The state controls all resources and businesses, which are often owned and operated by the government.
2. Central planning: Production levels, resource allocation, and distribution are determined by a central planning authority.
3. Lack of competition: There is a limited or absence of competitive forces, as the government sets the prices and determines the quantity of production.
4. Limited consumer choice: Consumers have limited options as the government controls the production and availability of goods and services.
A mixed economy is an economic system that combines elements of both market and centrally planned economies. It includes both private and public ownership of resources and businesses. The main attributes of a mixed economy include:
1. Private and public ownership: Resources and businesses can be owned and operated by both private individuals or corporations and the government.
2. Market forces and government intervention: There is a balance between market forces and government intervention in determining resource allocation, prices, and production.
3. Regulation and social welfare: Government regulations and policies are in place to ensure fair competition, protect consumers, promote social welfare, and address market failures.
4. Flexibility: A mixed economy allows for economic diversification and adaptation to changing circumstances.
To gather more detailed and comprehensive information about these economic systems, it is recommended to consult reputable sources such as economic textbooks, academic papers, or trusted websites dedicated to economics.