Question

Arrange the types of economies from least government involvement to greatest government involvement.

Answer 1

1. Market economy - In a market economy, the government has very little to do with the decisions regarding investment, production and distribution. Instead, these ideas come from the supply and demand that consumers create.

2. Mixed economy - A mixed economy companies private and public enterprises which has some government influence.

3. Socialist economy - A socialist economy is control by the government but still allows small ownership of productions and some say from individuals.

4. Communist economy - Controlled by the government with no influence from the public. Not a democratic society at all.