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An economic system where all decisions about production, pricing, and distribution are made by private individuals and businesses without any government intervention. Prices are determined entirely by supply and demand.
An economic system where the government makes all key decisions about what to produce, how to produce it, and for whom. The state owns most resources and controls prices, wages, and output.
Command or Planned Economy:
The relationship between the amount of a good or service available and the desire of consumers to buy it. This interaction determines prices in a market economy.
Supply and Demand
Public Sector:
The part of the economy controlled and funded by the government, providing services such as education, healthcare, policing, and infrastructure.
An economic system combining elements of both the free market and government planning. Some industries are privately owned while others are publicly controlled to balance efficiency with social welfare.
Mixed Economy
Private Sector:
The part of the economy owned and operated by private individuals or companies aiming to make a profit, rather than by the state.
The framework a society uses to decide how to allocate scarce resources, produce goods and services, and distribute wealth among its people.
Economic System:
When everyone who wants a job can find one at existing wage levels.
Full Employment
Economic Growth
An increase in the average income per person without major changes in the structure of society.
Government Finances
The management of government spending and taxation to influence the level of economic activity.
Balanced Regional Development
Ensuring that all regions in a country share fairly in economic growth.
The physical systems and facilities (e.g. roads, transport, ports, telecommunications) that support economic activity.
Infrastructure
Government action to protect natural resources and promote sustainable living.
Environmental Protection
Essential public services provided by the government such as healthcare, education, and housing.
State Services
Keeping inflation under control so the cost of living remains stable and industry stays competitive.
Price Stability