Centrally Planned Economy vs Market Based Economy (Hybrids (Many countries…
Centrally Planned Economy vs Market Based Economy
Many countries are hybrids of the two types of economies with some governmental input on stuff like minimum wage and so on but still have free markets.
A hybrid is a combination of two things into one allowing for more benefits and less disadvantages.
Comparative Economic Systems
Small, Town or Regional
Lack of "Money"
Free/Market Based Economy
Autonomy: People are allowed to do whatever job they please, businesses are allowed to produce whatever they want and people can buy what ever they want.
Money is the medium of exchange
No equality between people
Profit is the motive
You can make as much as you want in a pure free economy
The harder you work the more you're paid
Centrally Planned Economy
The government controls all businesses, production, and distribution. All people are paid the same amount even those who work harder are paid the same as those who hardly work.
Extreme of a centrally planned economy
A hybrid of Capitalism and Communism. There is government regulation but there tends to still e free markets.