Why are mixed economies more popular than either command or market economies?
2006-10-09 00:27:05 · 4 answers · asked by kindle_beauty24 1 in Social Science ➔ Economics
First: If gouvernment was unessential it wouldn`t have existed at first place. Theres always need for some kind of arbitration and redistribution in order do make sustainable growth and social diferentiation.
In market economies, preasumption is that theres no arbitration and that resources are alocated according to the expected profit rate - the higer they are, the more capital will be invested in that sector. But remember that liberal capitalism wouldnt redistribute money in education or some other nonprofitable activities that make our everyday life dynamically.
In command economies on the other hand, you have one big ruler, manager, organiser and thats Governement which is totaly wrong, cause its uninformed and "out of the spot" considering that Government is not directly included in business and cant be efficient and effective as company can be. Company is the one that produces, give services or sell, not the Government.
So you need mixed economies that give necessary economic boost but also take care of everyday needs.
2006-10-09 02:25:35 · answer #1 · answered by Mudri 2 · 1⤊ 0⤋
Mixed economies are more balanced. The resources are owned by both the public (government) entity and the private entities (individual businesses/orgs). eg's of countries with mixed economies include Australia, U.S.A and New Zealand.
Command economies have many disadvantages such as the lack of freedrom of choice. Here, resources are owned entirely by the government. eg's are Russia, China
So whatever the govt says goes. Not many options/choices for the people.
Free market economies - resources are owned entirely by the private sector. There is NO government interference whatsoever and this results in consumers getting cheated, increase in black market operations, cheap goods flowing into the country etc.
eg's none exist in the world today.
2006-10-09 07:45:53 · answer #2 · answered by Kendra 3 · 0⤊ 0⤋
Because they have both the good & bad of both the economies and if governments choose only the good then they will reap benifits but unfortunately this is not being done so due to political reasons.
2006-10-09 07:32:59 · answer #3 · answered by ssmindia 6 · 0⤊ 0⤋
mixed economies allow you to spread your bets.
2006-10-09 07:32:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋