Saturday, 12 July 2008

What are examples of government intervention in traditional, free market, and command economic systems?

Eliezer Kertzmann

Government intervention into economics is most easily seen in a command economy. In a
command economy, most of the nation's economic system is controlled by the government. In a
command economy, it is not uncommon for the government to plan the economy and control
production, price, and distribution. The Soviet Union would be a good, historical example of a
command economy.

In a true free market economy, there would not be any
government intervention. This is the idea of "laissez-faire", in which the government
stays out...

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