Comravative analysis of market and planned economy

An economic system is the way in which a country uses its available resources to satisfy the demands of its inhabitants for goods and services
What is an economic system?

THE BASIC ECONOMIC SYSTEMS
Planned economy
A planned economy is an economic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income. In such an economy, the planners decide what should be produced and direct enterprises to produce those goods.
Market economy
A market economy is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system.

Planned economy
In such an economy, the planners decide what should be produced and direct enterprises to produce those goods.
Market economy
Businesses and consumers decide of their own volition what they will purchase and produce.

COMRAVATIVE ANALYSIS OF MARKET AND PLANNED ECONOMY
Planned economy
production, distribution, and pricing decisions are made by the government furthering some overarching macroeconomic plan.
Market economy
production, distribution, and pricing decisions are made by the private owner of the factors of production based upon their own interests

Planned economy
a central government decides what will be produced and in what quantities.
Market economy
producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.

ADVANTAGES
Planned economy
Everyone in society receives enough goods and services to enjoy a basic standard or living
Nations do not waste resources duplicating production
The state can use its control f the economy to divert resources to wherever it wants
Everyone receives a good education, proper heath care, transport is available
Market economy
Supply and demand control what is sold.
consumer's freedom of choice
freedom of entrepreneurial choice
availability competition