Please enable JavaScript.
Coggle requires JavaScript to display documents.
Types of economy - Coggle Diagram
Types of economy
Command economy
Planning mechanism allocates resources. State is responsible for making decisions about what's produced.
Advantages of command
Planning takes into account collective needs - goods that benefit society that aren't profitable are produced
-
-
-
-
Free market economy
Price mechanism. Price fluctuations help allocate resources. Demand in goods = price rise. Signals to producers that its more profitable to produce that good.
-
-