• Command Economy:
An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.
• Laissez-faire Economy Literally from the French:
“allow [them] to do.” An economy in which individual people and firms pursue their own self-interests without any central direction or regulation.
• Mixed Economies:
The differences between command economies and laissez-faire economies in their pure forms are enormous. In fact, these pure forms do not exist in the world; all real systems are in some sense “mixed.”
• Laissez-faire Economy Literally from the French:
“allow [them] to do.” An economy in which individual people and firms pursue their own self-interests without any central direction or regulation.
• Mixed Economies:
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