Mixed market vs Command
Has both centralized and decentralized government. Private property, Freedom of choice, self-interest, competition, prices, capital goods, and specialization. The government has limited power. They help get cops, fixing roads which is why we have taxes, and services like hospitals, doctors, etc.
Has Centralized Government which means that they own property and they make decisions. The people no say in anything.
Who owns Factors of Production
- They are economic resources
- Mixed Economy : Private/ government own the factors.
Ex: Lands are owned by government and entrepreneurs own their business.
- Command: Government owns the factors
Ex: Every economic resource would under the control and ownership of the government because of the centralized plan.
Preference between economies
Mixed Economy is the preference for the US and for most Americans. This economy gives the society freedom to a lot of things, and the government has limited power/ownership of the factors of production which is what the people want.
The people have power over their private property
Buyers and sellers are allowed to be independent.
Helps do the stuff that people wouldn't do like the goods and services
Allows regions to use resources for bartering or their use of money can help exchange goods
Flynn, McConnell Brue (2018). Macroeconomics: The Market System and the Circular Flow
Chapter one and two test and study guide
Chapter one and two notes/powerpoint