Explain:-
1) Centrally Planned Economy
2) Market Economy
3) Mixed Economy
Answers
Answer
Centrally planned economy
An economic system in which economic decisions are made by the state or government rather than by the interaction between consumers and businesses.
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⁌A centrally planned economy⁍
It is an economy where decisions on what to produce, how to produce and for whom are taken by the government in a centrally managed bureaucracy. Central planning is also referred to as a 'Command economy' or 'Communist economy'.
⁌A market economy ⁍
It is a system where the laws of supply and those of demand direct the production of goods and services. Supply includes natural resources, capital, and labor. Demand includes purchases by consumers, businesses, and the government. Businesses sell their wares at the highest price consumers will pay.
⁌A mixed economic system ⁍
it is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.