free, mixed and command economies
mixed economies
free markets
private ownership
individuals choose
markets force
mix or private and public ownership
individuals and state choose
resources allocated by markets and planning
central planning
state ownership
state chooses
central targets
strengths
freedom exits
small degree of government influence
variety produced
high degree of consumer satisfaction
weaknesses
deciding for whom to produce
young, sick and old would struggle
markets sometimes fail
characteristics
freedom to buy what they like and sell what they like
changes in supply and demand control prices
individuals act in their own intreast
little government interference
characteristics
government makes all key decisions
public ownership of all property
centrally planned production
government depicts prices
profit is not a factor
characteristics
government makes general policy decisions
mostly private but some public ownership of property
government intervention to solve the problem caused by market failure
in private industry is the driver
Adam Smith- Scottish Economist
he wrote 'wealth of nations' book about production organisation and advocated for free trade
Thomas Malthus 1798
said that we will fun out of food and population outstrips the growth of food however he didn't factor in industrial revolution
David Ricardo- introduced the theory of comparitive advantage to explain trade between nations and that they did best when the did what they were best at , everyone benifited
John Maynard Keynes 1936
launched- 'keynesium economics'
wrote- 'how economies work' and 'general theory of economics'
supply side economics
known as trickle down economics