The economic systems of countries also evolve over time and may change from one particular system to another when the government, economic advisors of the country, and the public deem appropriate.Tags: English Literature And Creative WritingHamlet Theme EssayMedia Analysis EssaySecond Punic War EssayCreative Writing Character DevelopmentThesis Statement For Obesity Prevention
There may be wastage of resources as the economy would be in a state of pure competition and expenditure would be incurred on activities such as advertising, marketing, and continuous innovation of products/services (Coates, 2014).
Essential services would not be provided to the public such as free medical care, police and army services, and education (Robertson, 2013).
While most of the countries in the world are mixed economies, there are examples of countries which are closer to being free market economies or command economies.
As with other economic concepts, each of the economic systems mentioned have their own respective advantages and disadvantages (Ostrom, 2010).
The command economy system has become substantially outdated as most economies, such as China and the Soviet Union, are transitioning into mixed economic systems.
Mixed Economic System Essay
This paper discusses the advantages and disadvantages of each of the economic systems and particularly focuses upon the advantages and disadvantages that England has of being a mixed economy rather than a free market economy or a command economy.This is because the USA has approximately 30% government spending in its GD, one of the lowest figures in the world, with 70% expenditure incurred by the private sector (Coates, 2014).A pure command economy is the opposite of a free market economy and will be explained in the next section of this paper.Also, consumers would easily be able to find the products which they are demanding as the market would be operating according to the price mechanism (Polak, 2013).There would be higher investment in research and development and more chances of larger technological breakthroughs as firms would be competing to gain a competitive advantage in the design of their products /services and/or gaining a cost advantage in their production processes.The free market economy may also mean higher productivity levels, higher wages, and more work opportunities for individuals.This is because the economy would be in a state of rigorous competition, making room for more workers to gain higher incomes as businesses would also be competing to recruit the most talented and skilled workers.Accordingly, a free market economy may be beneficial for the rich but may be highly detrimental for the poor.There is no example of a complete free market economy in the world but the USA comes closest to the definition of a free market or capitalist economy.This paper will aim to explain the three types of economic systems and their advantages and disadvantages and then commence with a critical evaluation of the advantages and disadvantages of England being a mixed economy rather than a complete free market economy or a pure command economy.The paper will begin with an explanation of the free market economy and the advantages and disadvantages of the free market economy, followed by the command economy and the advantages and disadvantages of the command economy.