The Central Dilemma: Market vs. Command
like a bewildering array of economic “isms.”And indeed, there is a great variety in the-way countries organize their economies, At one end of the ~plectrums the a market system, people act voluntarily and primarily for financial gain or personal satisfaction. Firms buy factors and produce Output,sailcloth~ill- ,puts and Pullouts ill a way that will maximize their profits, Consumers supply factors and buy consumer.
In between are the socialist and the managed market economies. In both cases government plays an important role in guiding and directing the economy. though-much less so than in a command economy. The tension between markets and command runs through all-discussions about alternative economic’ systems. Let us look in more detail at some of the alternatives to the mixed market economies.