ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -While a mixed economy combines free market with central government planning and intervention, a market economy relies purely on the free market (and the rules of supply and demand) to regulate the economy. For this reason, profit motives, incentives, and capitalism are the driving factors of the economy.

Detailed explanation-2: -The production of goods and services, investments, pricing, and distribution are in the hands of private enterprises. In a command economy, economic decisions concerning production and pricing rest with a central authority, such as a government. A market economy promotes free competition among market participants.

Detailed explanation-3: -A socialist system does not have a separate estate because everything is controlled by the government. Mixed economy: Mixed systems have characteristics of both the command and the market economic system. For this purpose, the mixed economic systems are also known as dual economic systems.

Detailed explanation-4: -Examples include the economies of China, Norway, Singapore, and Vietnam-all of which feature large state-owned enterprise sectors operating alongside large private sectors.