Difference between Command Economy and Mixed Economy

Understanding the differences between a command economy and a mixed economy is crucial for grasping how various economic systems operate and impact society. A command economy, often called a planned economy, is characterized by extensive government control over the production, distribution, and pricing of goods and services. The state makes all economic decisions to achieve equal resource distribution and prevent market monopolies.

What is Command Economy?

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What is Mixed Economy?

Difference between Command Economy and Mixed Economy

A command economy and a mixed economy represent two different approaches to managing an economy. In a command economy, the government maintains extensive control over the production, distribution, and pricing of goods and services, aiming to equal resource distribution. Conversely, a mixed economy combines free-market and command economies, where the government and private sectors play significant roles in economic decision-making. This blend allows for a balance between regulatory oversight and market-driven growth. Below is a comparison of the key differences between these two economic systems:

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