Most countries have a mixed economy that lies between the extremes of a pure command economy and a pure market economy. A mixed economy combines elements of governmental intervention and private enterprise to avoid the potential downsides of both pure systems. While a command economy could exploit workers and favor the rich, and a market economy could allow unsafe products and unchecked prices, most countries aim to achieve a balance through a mixed approach.

1. Mixed Economy

2. Essential Question
Why do most
countries have
a mixed
economy?

3. What Do You Like on a Sundae?
 You and your partner
discuss it.
 What toppings do you
like on an ice cream
sundae?
 Plain Vanilla?
 Or absolutely
everything (and I mean
everything)?

4. What Do You Like on a Sundae?
Chances are, you were somewhere
between plain and everything.
When discussing economies, most
countries are somewhere in between too.
When a country is not completely a
command economy and not completely a
market economy, but somewhere in
between, it is called a Mixed Economy.

5. Mixed Economy – “In Between”

6. “Pure” Command Economies
If government controlled everything in the
economy, then having a diversity of
products would be very difficult.
With no private businesses, there would
be no competition, and products would
never improve.
The government could make the economy
exploit the poor and benefit the rich.

7. “Pure” Market Economies
If an economy was pure market, people
could sell anything, even things that could
hurt others.
Businesses could make things cost as
much as they wanted.
In order to make products cheaper, they
could skimp on safety and benefits for
workers.

8. Most Countries Lie Somewhere in Between
-However, they may be closer to one
side than the other.

10. Writing Prompt
With your partner, answer the following
questions:
 What bad things could happen if an economy
was pure market? (Be specific, at least 3
sentences)
 What bad things could happen if an economy
was pure command? (Be specific, at least 3
sentences).