Subject: Basic Microeconomics

1. ENUMERATE SOME (A)COMPARISONS AND SOME (B)CONTRASTS ON TRADITIONAL ECONOMIC

SYSTEM AND COMMAND ECONOMIC SYSTEM.
2. ENUMERATE SOME (A)COMPARISONS AND SOME (B)CONTRASTS ON MARKET ECONOMIC SYSTEM
AND MIXED ECONOMIC SYSTEM.

1A. SOME COMPARISONS

A. The traditional economic system tends to follow long-established patterns and the command
economic system is known as planned economy. Thus both acts with accordance to instructions or
precepts.

B. Both traditional economic system and command economic system discourage new ideas or new ways
of doing things.

C. In traditional economic system and command economic system they know which role to play and
about what, how, and for whom to produce.

1B. SOME CONTRASTS

A. The traditional economic system is based upon on people's belief and customs which are passed
down generation to generation while the command economic system is based on goals passed down
from a central ruler or ruling class like the government.

B. In a traditional economic system individuals and tribes make the decisions which these are often
based on customs, traditions, and religious beliefs. On the other hand, command economic system the
decision making is centralized on the government.

C. The government which is the central ruler of command economic system set economic growth
targets, which quotas are also assigned and there are poor incentives given to produce in an efficient
manner. In the traditional economic system growth is often limited because of the subsistent living and
little to no trade.

2A. SOME COMPARISONS

A. Both market economic system and mixed economic system are driven by the law of supply and
demand.

B. The market and mixed economic system have a common characteristic which is the concept of private
property and competition plays an important role or factor.

C. The market and mixed economic system have both the aspects of capitalism.

2B. SOME CONTRASTS

A. In the Market Economic system consumers and businesses can take free decisions on what to
purchase and what to produce. Whereas within Mixed Economy the production, distribution and other
activities are limited for free decisions and both private and government intervention is visible
B. The government exercises little control over market economic system while in the mixed economic
system government tends to exert much more control than is necessary.

C. While a mixed economic system combines free market with central government planning and
intervention, a market economic system relies purely on the free market and the rules of supply and
demand to regulate the economy