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What is the difference between a free market economy, a mixed economy, and a command economy?

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    1. Free Market Economy: Definition: An economic system where decisions regarding investment, production, and distribution are driven by individual businesses and consumers. Characteristics: Limited government intervention. Prices determined by supply and demand. Competition drives efficiency. Example:‫اقرأ المزيد

      Free Market Economy:

      • التعريف: An economic system where decisions regarding investment, production, and distribution are driven by individual businesses and consumers.
      • الخصائص:
        • Limited government intervention.
        • Prices determined by supply and demand.
        • Competition drives efficiency.
      • على سبيل المثال: United States, Hong Kong.

      Mixed Economy:

      • التعريف: A system combining elements of both market and planned economies, allowing for private enterprise and government intervention.
      • الخصائص:
        • Government regulates certain industries.
        • Market forces operate in conjunction with planned elements.
        • Social services often publicly provided.
      • على سبيل المثال: Sweden, Canada.

      Command Economy:

      • التعريف: An economic system where decisions about production, investment, and distribution are centrally planned and controlled by the government.
      • الخصائص:
        • Government ownership of resources.
        • Centralized economic planning.
        • Limited individual choice.
      • على سبيل المثال: Former Soviet Union, North Korea.
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