Question

Mixed economies range between “pure market” at one end and “pure command” at the other end. Where they fall depends on how much the economy operates based on free enterprise and how much is under the control of the government. The line shown here is divided into four even sections. In which section would the economies of Israel, Saudi Arabia, and Turkey be classified? Responses

Answer 1

Israel, Saudi Arabia, and Turkey have mixed economies with elements of both free market and government control. They would likely be classified in the middle sections of the economic spectrum.

• The economies of Israel, Saudi Arabia, and Turkey are Mixed Economies, which means they incorporate features from both market systems and command systems.
• Reflecting a balance between private enterprise and government control, the exact position of these countries on the economic spectrum can be established by considering the degree of governmental involvement in economic decisions.
• While Israel has substantial government involvement in its economy, it also has a thriving private sector, balancing between a free market orientation and government controls.
• Saudi Arabia has a significant governmental role, particularly in the oil industry, but it also fosters private enterprise.
• Turkey, too, combines a moderate level of government involvement in the economy with an emphasis on privatization and market-oriented policies.
• Therefore, Israel, Saudi Arabia, and Turkey would all likely be classified in the middle sections of the mixed economy spectrum, neither fully market-oriented nor fully command-oriented.