1. The advantages of planned are:
The welfare of all citizens is the primary goal of the economic system.
Wasteful competition is avoided.
Wages are controlled by the state there is no industrial unrest. (Such as
strike action)
There is greater emphasis on the quantity of life (health, education,
elimination of poverty, moral direction) than on the quantity of
production (output) in the country.
Disadvantages:
NO freedom of choice for producers or consumers.
Lack of incentives for workers result in low morale efficiency. Managers
are also not motivated.
The system is too rigid to adjust when changes occur, this can result in
shortages.
The Advantages of Market are:
• The market produces a wide variety of goods and services to meet the
consumer's wants.
• The free market responds quickly to people's wants.
• The market system encourages the use of new and better methods and
machines to produce goods and services
Disadvantages:
Factors of production will be employed if only it's profitable to do so.
The free market can fail to provide certain goods and services.
The free market may encourage the consumption of harmful goods.
The social effects of production may be ignored.
The market system allocates more goods and services to those consumers
who have more money than others.
2. Advantages of Mixed Economy
• Since mixed economy involves both government and private enterprises
it has the advantage of taking the benefits of capitalist nature of private
companies and socialist nature of government.
• There is less inequality of income because intent of government is to have
a balanced economic growth of an economy.
• Mixed economy allows individuals to run their business and make profits
but at the same time it places some responsibility on these companies by
inducing them to contribute towards the welfare of society.
Disadvantages of Mixed Economy
• Since welfare of society is important in a mixed economy it leads to lower
than optimum use of the resources because government mobilize the
resources towards the production of those goods and services which are
beneficial for the society as a whole rather than producing those goods
and services which in economic terms are more beneficial for an
economy.
• Under mixed economy private enterprises have to face lot of difficulty
because of various government loopholes like favoritism and
bureaucratic nature, which is prevalent in mixed economy.
