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ID number:403796
 
Evaluation:
Published: 01.12.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The four functions of an economic system are what to produce, how much to produce, how to produce and whom to distribute to.
The market economy is one that is controlled by the people and there is little government intervention. It is also known as a free enterprise economy.
The planned economy is one that is controlled by the government and there is a lot of government intervention into the way in which the economy runs.
They both try and solve the economic problem of trying to satisfy mans unlimited wants with relatively scarce resources in different ways.

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