Economics Mixed Economy Questions
The main difference between a mixed economy and a command economy lies in the level of government intervention and control over economic activities.
In a mixed economy, both the government and private individuals or businesses play a role in determining the allocation of resources and making economic decisions. The government typically regulates certain sectors, provides public goods and services, and implements policies to promote competition, protect consumers, and address market failures. At the same time, private individuals and businesses have the freedom to own property, engage in voluntary transactions, and pursue their own economic interests.
On the other hand, in a command economy, the government has extensive control and authority over economic activities. It centrally plans and directs the allocation of resources, production, and distribution of goods and services. The government sets production targets, determines prices, and decides on the allocation of resources based on its own priorities and objectives. Private ownership and market forces have limited or no role in a command economy.
Overall, while a mixed economy allows for a combination of government intervention and market forces, a command economy relies heavily on government control and planning.