Almost all business firms are owned by the government and the firms produce under government directives
Decision making is set by a central economic plan that is created and enforced by the government
Production goals are set by the government
Capital goods are used among industries based on the government's priorities
Referred to as "Capitalism" or "Mixed Economy"
A mix of centralized government and decentralized actions
Individuals and businesses seek their goals within their own decisions
Dominant force are private markets
Private ownership of resources
Participants act in their own self interest
Goods/Services are produced and supplied by whoever is willing to do so
Who Owns Factors of Production?
Characteristics of the Market System
1. Private Property
2. Freedom of Enterprise
3. Freedom of Choice
6. Market and Prices
Private property and resources are owned by private individuals and firms.
Freedom of enterprise and freedom of choice are under entrepreneurs and private businesses ownership.
Self-interest is used by individuals, mainly entrepreneurs and property owners.
Competition is owned by two or more buyers/sellers who act independently in the market system.
Market and prices are owned by the market system. The market system transfers the final decisions made by producers and consumers.
Mixed Market Economies
I believe that mixed market economies are the preferred economic system because it is a mixture of the two other economic systems; Laissez-Faire Capitalism and the Command System. In the market system you have decentralized government paired with some government control. There are several benefits of the mixed market system. One benefit is both individuals and businesses seek their goals through their own work, the government doesn't play a part in it. Another benefit is private ownership of market activity is allowed. Goods and services are able to be produced by anyone who is wanting to. The mixed market economy offers high rewards to create incentives to both firms and entrepreneurs. The last benefit of this economic system is how the market is the force; the government plays a minor role in the economy but it is not the dominant force.