I am just confused about one thing. From my previous knowledge i remember that there are three kinds of economies: planned economy (only public businesses), free market economy (only private businesses) and mixed economy (both). However, in the textbook we are using, market system is defined as a system that comprises of private businesses but may have government control. So my question is, when we talk about market system what exactly does that suggest? Private businesses with some government control or no government control? Because it makes a difference; right? For that reason I am not sure if I did the assignment correctly. Sorry for any mistakes!
When we spoke of government control, it was mentioned with a disclaimer that these are very limited government control in order to protect the interests of the society. It was in this light we mentioned. It wasn’t that the Government control is out and out.
Tell me if this is clear or the confusion remains.< Back to Questions