In a market economy, all major decisions related to the production, distribution, commodity and service prices, are made by the government.

4. Supply is the sellers' side of the economy.

5. Demand is the buyers' side of the economy.

6. The market price for each commodity or service is determined by the interaction of supply and demand.

7. Market economies aim to provide subsidies for a particular industry.

8. In a market economy, prices for different commodities are pre-determined.

9. In a market economy, the amount of regulation controlling different industrial sectors is large.

10. In a mixed economy, the role of the government is to simply make sure that the market is stable enough to carry out its economic activities properly.

11. A planned economy adjusts automatically to meet the changing demand.

12. Firms tend to be highly competitive in a planned economy.

13. Healthcare, education, defence and policing are provided by the private sector in all types of economy.

14. In a planned economy, production alters swiftly to meet the changing demand.

15. Safety standards concerning products, services and working conditions do not require government intervention to protect consumers and workers.

16. In a planned economy, national and state governments play a minor role.

17. The planned economy is a flexible system.

18. The planned economy is rather slow to change in relation to changes in consumer needs and fluctuating patterns of supply and demand.

19. Certain features from both economic systems provide for flexibility in some areas and government control in others.

20. Mixed economies prevail in many countries where neither the government nor the business entities control the economic activities of that country.