By Jeovanna Sanchez
The main difference between Market Economy and Mixed Economy is the amount of government involvement. Though both systems are pretty much the same, Market economy thrives on picking ingredients from other systems to add to the "mix", while Market Economy follows the laissez-faire ( to leave) idealism, in which government participation isn't a component of the system.
Canada, the U.S , Hong Kong, Denmark, and others share the same idealism when it comes to economic systems.
- The structure of a Command Economy and some of it's government involvement.
- The same efficiency of Traditional Economy
- The Customer sovereignty, Competition, Opportunity to have private Property and Specialization, Profit, Voluntary Exchange from a true Market Economy.
- Mixed economies are never balanced, there is always one ingredient that weighs the mix down.
- The lean tends to be more towards the governmental involvement that sometimes lead to a little bubbles of monopoly.
- Sometimes the Mixed Economy idealism becomes victim of the change of power between parties. though most agree with the efficiency of the system as is, each parties divides the ingredients for it all differently, causing certain shifts in the outcome.
Three Basic Economic Questions
What will be produced?
Mixed Economy works based off the supply and demand principle. So whatever is demanded will be supplied.
How will it be produced?
A Mixed Economy System allows for both the private and the public side of the economy to take part in the production of goods and services, while keeping the scarcity factor in mind
For Whom Will it be Produced?
A Mixed Economy addresses this question by having a wide system of distribution. Mixed Economies allow for people of different economic statutes to have the opportunity to move up or down in the scale, allowing for there to be someone that will always be able to pay certain prices.