Economic Systems(continued)
Market Economies
Market Economies is also known as capitalist economies. In this type of economis system, the questions facing the economy is answered by the forces of demand and suppply. What to produce - What the customer demands. How to produce - By private companies, the companies decide the most efficient method and competes with each other to win customers. For whome to produce - The production is done for those who demand. It is for the customers willing to spend and buy it.
Everyone in a market economy acts in self-interest. The factors of production are owned by private individuals and companies. Goverment has a very minimal role in the production.
Mixed Economies
In a mixed economy, there are features of both the market and command economies. Some of the factors of productions are owned by the government, while others are owned by private sector. Almost all the economies today are mixed economies, however the degree of mixing varies. Some are more market oriented, while some are more towards government planning.
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