Market, Planned And Mixed Economies

Question 1

List the attributes of Market economies

Answer 1

allocation of resource is determined by the forces of supply and demand market forces dictate quantity of production and consumption
price is dependent upon supply and demand
wealth is held individually rather than collectively

Question 2

Attributes of Mixed Economies are

Answer 2

as the name suggests, it incorporates elements of both market and planned economies resource allocation and production are determined by a mixture of factors
government decisions ( both direct and indirect )
private sector decisions
๏ prices are affected by supply and demand
๏ but are also affected by government actions such as taxation and subsidies
๏ wealth is split between the individuals in society and the government

Question 3

Planned economies have the following attributes

Answer 3

allocation of resource is determined centrally by government
prices are fixed centrally for both resources and production
prices are not therefore the result of the forces of supply and demand individuals own items of personal property but …
… real wealth is held by government ( central or regional )