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Bsa2a Igarta, Roselyn. Activity 1.2.1

This document compares different types of economies: - Traditional economies rely on customs and history to determine production and distribution, while market economies use private ownership and voluntary exchange. - Mixed economies combine elements of command and market economies, with the government working with producers. - Command economies give the government control over production decisions, rather than individuals, whereas market economies rely on supply and demand. - Mixed economies blend government intervention and free market forces, allowing private production along with regulation, as opposed to purely free market systems.

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Roselyn Igarta
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46 views

Bsa2a Igarta, Roselyn. Activity 1.2.1

This document compares different types of economies: - Traditional economies rely on customs and history to determine production and distribution, while market economies use private ownership and voluntary exchange. - Mixed economies combine elements of command and market economies, with the government working with producers. - Command economies give the government control over production decisions, rather than individuals, whereas market economies rely on supply and demand. - Mixed economies blend government intervention and free market forces, allowing private production along with regulation, as opposed to purely free market systems.

Uploaded by

Roselyn Igarta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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IGARTA, ROSELYN T.

BS in ACCOUNTANCY
AE 106 ECONOMIC DEVELOPMENT
Activity 1.2.1
Traditional Economy vs. Market Economy
Traditional economy is a system that answers all the economical questions (what
goods are to be produced, how much goods are to be produced, how goods and services
are produced/performed and for whom goods are produced) typically through customs,
beliefs and through history based on society's part of practices. While market economy
utilize private ownership as the means of production and voluntary exchange or made
contracts between the seller/s and the buyer/s among themselves.
Traditional Economy vs. Mixed Economy
As defined, traditional economy are based on subsistence economy, basically a
means of keeping alive or in tagalog, pantawid-buhay. While mixed economy, answers all
the economical questions and it is a combination of command and market economy,
where the producers are working closer with the government.
Traditional Economy vs. Command Economy
Traditional economy are based on what has been the practices of a certain society
with regards to their livelihood and it is passed down generation to generation without
any intervention of any economical systems. While command are when government are
the one who are responsible for production of goods whether its people don't want and
need it, it leaves no choice for the people.
Market Economy vs. Command Economy
Market economy is centralized by sovereignty or supreme power of authority
influenced by the system depends on prices set by the conditions of demand and supply,
while, Command economy is when the government are the one who decides the questions
for the country. It is not the people who decides what to produce for consumption unlike
in market, it is when people are free to authorize their own production of good/s and
service/s with inclusion of buyer/s intention.
Command Economy vs. Mixed Economy
Command economy are when government decides for its people without any
intervention to individuals belonging to a certain place. While Mixed economy is the
intervention of two economies which are command and market, it is part command which
is governed by the government or it is part free where two agents (seller and buyer) have
voluntary exchange of agreement.
Mixed Economy vs. Market Economy
Mixed Economy is a blend of free market and government intervention which
there is an healthy competition between producers and allows private participation of
production, and to regulate profit motives, incentives and other factors of the economy.
While market economy relies on purely free market depends on the prices set by the
conditions of demand and supply.

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