Comparison Chart
| Basis for Comparison | Market Economy | Command Economy |
|---|---|---|
| Regulated by | Producers and Consumers | Government |
| Price mechanism | Used | Not used |
| Land and other resources | Owned by private individuals and firms | Owned by the government |
| Growth Rate | Rate of economic growth is high | Rate of economic growth is low |
How are market and command economic systems similar?
A mixed economic system has features of both a command and a free market system. A mixed economy is partly controlled by the government and partly based on the forces of supply and demand. Most of the main economies in the world are now mixed economies, which operate under a mix of socialism and capitalism.
How is a mixed economy different from a command economy?
In a command economy, the system is controlled by the government. A mixed economy is partly run by the government and partly as a free market economy, which is an economic system that includes no government intervention and is mainly driven by the law of supply and demand .
How are prices set in a command economy?
Prices cannot arise naturally like in a market economy, so prices in the economy must be set by government officials. In a command economy, macroeconomic and political considerations determine resource allocation, whereas, in a market economy, the profits and losses of individuals and firms determine resource…
Which is the most practical mixed economic system?
The mixed economic system is the most common and practical system in modern society. A pure command economy or market economy only exists theoretically. Combining the features of a market economy and a command economy, a mixed economic system carries advantages from both sides
