Question

Distinguish between centrally planned economy market economy and mixed economy

Answer 1

Explanation:

Centrally planned economy

1. These are the economies where the economics activities are firmly controlled by the goverment or some central authority.
2. Ecomomics decisions are driven by the motive of social welfare.
3. The customer is not sovereign .
4. Most resources are controlled by government.
5. Public sector dominates the economic activity.

Market Economy

1. These are the economies where the economics activities are controlled by the market sources.
2. Ecomomics decisions are driven by the motive of profit maximisation.
3. The customer is sovereign.
4. Most resources are controlled by the people.
5. Private sector dominates the economic activity.

Mixed Economy

1. These are the economies where the economics activities are governed by the free play of market forces but are regulated by the government.
2. Ecomomics decisions are driven by the both motive of profit maximisation and social welfare.
3. The customer is sovereign.
4. Most resources are controlled by the both people and government.
5. Both public and private sector dominates the economic activity.

Hope it helps..