The last economic system is the mixed market system. The mixed market system can be associated with both the planned and the market economies. A mixed market shows traits from both systems. For example cigarettes can be sold legally but government restricts minors from purchasing the item. (Ebert/griffin, pg 12).
There are three major disadvantages of a planned economy. The first is that there is no entrepreneurship. The second is consumers don’t have any input as to what is produced. The last major disadvantage is that there is no spur to improve quality and productivity.
The three main advantages of the Planned economy. First you will always fine sufficient investment growth and always fine equal of wealth and last may encourage the spur of new productivity.
Although there are many disadvantages a planned economy does have an advantage. There will always be equal wealth and steady growth of investment.
Reference: Ebert and Griffin, R.W. (2005). Business essentials. Upper Saddle River, NJ: Pearson Prentice Hall
Economic Systems (n.d.). Retrieved February 22, 2008, from http://www.rpi.edu/dept/advising/free_enterprise/us_government/economic_systems.htm. [continues]
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