Comparing The 3 Types of Economies
Tevarus Blutcher, Arterius Cochran
The 3 types of Economies
In the world, there are three types of economies. They are Command Economies, Market Economies, and Mixed Economies. Command Economies are basically dictatorships. The country's government makes all decisions involving resources and housing. Market Economies are the exact opposite. The businesses , housing, and all decisions involving productive resources are made by the people/ the markets. The third and final type of economy is the mixed market economy. The mixed market economy is a combination of command and market economies. The government has a little involvement while the markets/ people make the majority of the decisions.
The command economy, since it is completely regulated by the government, has great Economic Security meaning that all the basic needs for the people are met. However, since the people have no real "say so" in how they live, or how they work, the Economic Freedom is low. One example of a country with a command economy is Cuba.
Economic Freedom Rating: 0
Economic Security Rating: 5
Mixed Market Economy
The mixed market economy, which is a combination of the other two markets, has great economic freedom because this type of economy allows the people to make A MAJORITY of the decisions with little government involvement. Along with that, however, it also has great economic growth. One great example of a country with this form of economy is the United States of America.
Economic Freedom: 5
Economic Growth: 4
The Market Economy, which is the exact opposite of a command economy, is a type of economy where all the power of the markets and government, are entirely left to the people/markets of that country. This type of economy has extreme economic freedom and full employment. The people work for money and perform services for others. Hong Kong is a great example of a country with a market economy.
Economic Freedom: 5
Full Employment: 5