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- A mixed economic system allocates resources based on the private and public sector joining together, while in a command economy the government has a vital role in allocating the factors of production.
- In a mixed economy the government decides on what to produce and also the market forces of demand and supply. And how to produce these goods is decided through price machanism. And finally to whom to produce these goods depends upon the consumers demand.
- While in a command economy what to produce is decided by the government planners. How these good should be produced is decided by the government through input ouput analysis. And then for whom to produce these goods depends upon how the government distributes these goods and services through state outlets, and where as for the consumers, they are suppose to purchase these goods and services with the money which they earn.
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