Question

Using complete sentences explain the difference between a command econmony and a market economy. What type of economic system is created when these two systems are combined? What are the benefits of combining these two systems

Answer 1

A mixed economy is the blend of command economy and market economy and thus strikes a perfect balance between these two extremes.

Step-by-step explanation:

Market Economy refers to the economic framework where the demand and supply factors determine the output and availability of goods and services. On the other hand in a command economy. the government takes all economic decisions, and the businesses are publicly owned.

A mixed economy refers to a great relationship between a free market economy and a command economy. Therefore this type of economic structure is, on the whole, free from government interference. But the government must control and supervise different sensitive economic areas such as communication, public utilities, security, etc.