Difference between Planned and Market Economy





Distinguish, differentiate, compare and explain what is the Difference between Planned and Market Economy. Comparison and Differences.

Difference between Planned and Market Economy

1. A planned economy is that economy in which course of economic activities is decided by some central Authority or by the government. The planned economy is that economy in which economic activities are fully dependent on the role of market forces.

2. In a Planned economy system, producers are not free to produce. Only a central authority decides the full variety of goods and services that people can consume. In Market economy system, producers are free to produce the highly demanded goods in order to maximize their profits.

3. In Planned economy, social welfare is the prime consideration. In Market economy, self-interest is the prime consideration.




Tags:

Difference between Market Economy vs Planned

Planned vs Market Economy

Differences between Market Economy vs Planned

Spreading Knowledge Across the World

USA - United States of America  Canada  United Kingdom  Australia  New Zealand  South America  Brazil  Portugal  Netherland  South Africa  Ethiopia  Zambia  Singapore  Malaysia  India  China  UAE - Saudi Arabia  Qatar  Oman  Kuwait  Bahrain  Dubai  Israil  England  Scotland  Norway  Ireland  Denmark  France  Spain  Poland  and  many more....