- Government rules all , sometimes referred to a - Freedom, profit, innovation, efficiency
“Planned Economy” Disadvantages - Rare Freedom, government decides what foods and services will be produced, and how they will - Economic good of individual is superior be produced and how they will be distributed - No way of providing for national defense - WANTS of individual consumers are rarely - Unequal distribution of wealth considered - Social concerns : making money Advantages (Tram Nguyen, 2015) - Funds and time used for other purposes https://www.youtube.com/watch? - Resources distributed more evenly v=RDkPA4H5G54 - Less socio-economic inequality - Seek to provide for everyone - Nation’s resources used to produce things not What type of economy does the profitable in a market economy Philippines adopt?
Disadvantages The Philippines adopts a mixed economic
- Consumers and producers are free to make decisions - Individuals act in their own interest and benefit others while doing so (Adam Smith agrees) - Fundamentals : private property, specialization, consumer sovereignty (the authority of a state to govern itself or another state), competition, voluntary exchange, limited government involvement