Commerce Hacked: Mixed, planned and Market Economies Compared

Comparing and Contrasting Different Types of Economies

Studying high-school commerce? Here is a brief outline contrasting different types of economies. Use this as a summary sheet and make sure you understand the key concepts :)

The following summary includes:

• A brief overview of different on how different economies are run. 
• Trade implications
• Example of each
• Advantages and Disadvantages of planned, mixed and market economies

Planned (command)	Mixed	Market  (free enterprise)
Government dictates what is produced	Some government intervention	Law of supply and demand determines what is produced
Government dictates wages & prices	Some government intervention	Market dictates wages & prices
Government owns businesses	Government owns some business	Minimal government ownership
High taxes on trade	Some taxes	Free trade
Government distributes wealth (communist and socialist tendencies)	Some wealth distribution	No redistribution of wealth (pure capitalism)
For example:North Korea + stable economy = Prices (inflation) are kept under control and unemployment levels. +resources used efficiently +less inequality in wealth -consumers don’t get what they want - lack of profit makes businesses inefficient	For example: Australia Mixture of both of these	For example: USA + Businesses become more efficient +more variety of goods - Inefficient distribution of resources. - exploitation of workers - social and economic inequality