Mixed Economics

Topics: Market economy, Economic system, Mixed economy Pages: 4 (1252 words) Published: May 16, 2013
Assignment 2- Mixed Economies

In this assignment I have been asked to examine the arguments for and against the UK been a mixed economy of both private and public organisations. An economy consists of the economic system of a country, which is the process it uses to determine what is produced and how it will be distributed. There are three different ways to determine on what is produced and how it will be distributed, by either a market economy, mixed economy or a command economy.

A command economy is an economy that is largely controlled by the government and is made up of public organisations. The central government will make all the decisions regarding what good and services are produced and how they will be distributed. The government does this through a planning process so a command economy could also be known as a planned economy. Through a planning process the government will decide who to allocate resources to and will they direct producers what to produce meaning that consumers will have limited choice as there is little variety of goods and services. There are 3 main agents in a command economy the government, the consumers and the workers. In a command economy the government will ensure a more equal distribution of income and wealth, as everyone will be paid equal dependant of their job. The government will also provide merit goods like education, health care and pensions; this is through schools and hospitals. A merit good is a product that society values and judges that everyone should have regardless of whether an individual wants them. This type of economy will provide all citizens with a minimum standard of living. Command economies should be also be good for the environment because the government is about the greater good so should take into consideration the environment when deciding how many goods to produce but it doesn’t always work out that as they become more concerned about increasing productivity. A command economy can lead to...
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