Free market v centrally planned economy?

2 ANSWERS

1. James Augustus
   

   A planned economy also known as directed economy is an economic system in which the government manages the economy. This is the most extensive form which referred to command economy is also got the name of centrally planned economy, or command and control economy. The state or government has such kind of economies controls all major sectors of the economy and made all decisions about their use and about the distribution of wealth or income. In this economy system planners make decisions that what should be produced and direct enterprises to produce those goods. Planned economies are contrary to unplanned economies, for example in a market economy, where decisions about production, distribution, pricing, and about investment are made by the private owners, based on production of the product, customers, market value and public interests rather than upon furthering some overarching macroeconomic plan. Less extensive forms of planned economies are those that use indicative planning, in which the state employs "influence, subsidies, grants, and taxes, but does not compel.

   A free market is a market in which state does not intervene in economic system , except enforcing taxes, private contracts, and the ownership of property. free market is the opposite of a planned economy market where state directly regulates that how goods, services and labor may be used, priced, or distributed, rather than relying on the mechanism of supply and demand. Most of the supporter of a free market consider the term to express the means of production is under private, and not under the control of state or co-operative ownership. This is the modern use of the term "free market" by economists and in popular culture; the term has had other uses historically.
    

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2. Guest10545203
   

   how free market economy is differ from planned economy

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