1. An economic system is the way in which a country uses land, workers, natural resources etc. to satisfy the needs of its inhabitants.
2. Planned economies are sometimes called free enterprise economies.
3. In a true market economy the government takes all the decisions.
4. Market economy is based on private enterprise with private ownership of the means of production.
5. It is in planned economy where the state can control the economy and divert resources to wherever it wants.
6. Resources in a market economy are allocated with the decisions of many individual buyers and sellers.
7. Nowadays there are no pure market economies in the world.
8. The only aim of mixed economies is to avoid the disadvantages of both systems.