The 3 Types of Economic Systems
- Centrally planned economy
- Mixed economy
- Market economy
Centrally planned economySystem in which a nation’s resources are owned by the government. Came from the ideology that the welfare of the group is more important than individual well being, the idea came from Karl Marx.
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Types of Economic Systems
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Economic system in which resources are more equally divide between private and government ownership. It came from the idea that a successful system must be not only efficient and innovative but should also protect society. Most economies around the world are mixed economies but most mixed economies are trying to convert more of a market economy. This is called “Privatization” or “Privatizing”. Market Economy
The majority of nations resources are privately owned. Economic decisions are determined by supply and demand. Based on the belief that individual concerns should be placed above group concerns. The best features are free choice, free enterprise and price flexibility. The governments role is enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Personally I would prefer to live in a mixed economy. I say this because it is the best kind of economic system in my eyes. A mixed economy lies between a free market economy and a centrally planned economy. A mixed economy combines elements from free market and centrally planned to create a more favorable economy. Most nations operate mixed economies with varying combinations of capitalist and socialist features. Some benefits of a mixed economy are free enterprise, private ownership, a “safety net” and the ability for the government to step in if needed
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