Different types of economies
- Created by: Georgienortham
- Created on: 08-05-19 11:36
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- Types of economies
- Command economies
- An economy in which resources are allocated partly through price signals & partly on the basis of intervention by the state
- Most resources are allocated by the state & market mechanism only plays a small part
- E.g. China
- Free Market economies
- An economy in which market forces are allowed to guide the allocation of resources
- The majority of resources are allocated through markets rather than government & planning
- Healthcare would be entirely financed by the private sector & there would be no welfare benefit system
- E.g. Hong Kong/ US are the closest examples
- Mixed economy
- An economy in which resources are allocated partly through price signals and partly on the basis of intervention by the state
- Typically between 40% & 60% of resources are allocated by government & the free market
- Greater redistribution of income through welfare benefits such as state pensions,unemployment & sickness benefits & child benefits
- The healthcare system is administered & financed by the state
- E.g. The UK
- Command economies
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