1.4.1—Economic system decision-making

A market economy relies mainly on private decisions and price signals; a planned economy relies mainly on state direction; a mixed economy combines markets with government intervention.

The distinction concerns how decisions are coordinated, not whether any government or private activity exists. Real economies lie along a spectrum.

A market may allocate housing through prices, a plan may set output targets and administered prices, while a mixed system allows private housing but regulates rents or supplies public housing.

“Mixed” does not mean half market and half plan; the balance and sectors involved matter.