Firms owned by private sector

Profit motive acts as incentive for owners and mangers

Prices determined by supply and demand

Incentives for firms to be efficient and cut costs

Free market likely to lead to income and wealth inequality

There is no such economy with completely free market, however some have less government intervention than others

Inequality, market failure and monopoly

Industry owned and managed by the government

Government give little incentive to be efficient and profitable

Government may provide more equitable distribution of resources

Unlike free market economy, command economy actually do exist in certain countries

Inefficiency, governmental, shortages, surpluses, less choice and less freedom

Government owned firms have less incentives to be efficient

Mix economy is the most widely used economic system, as within this system country can allocated their system more to the free market or to command depending on their own needs

This economic system now only exist in traditional tribes, where goods production and distribution are driven by beliefs, customs, culture, and traditions. Within this economy, there is no currency and it commonly they are isolated from the rest of the world