10 Differentiate between planned & free economies. [6]

[Farzan Siddiqui]

[KN] Planned economy are mostly owned by government while free market economies are owned by the private sector.
[AN] Free market economies aim to maximize profits while planned economy aim to fulfill demands of general public.
[AN+] This leads towards higher prices in free economy.
[KN] Monopoly may develop.
[AN] In planned economy a monopoly may develop while due to high competition in free market, monopolies may not develop.
[AN+] This leads towards controlled prices in free economy.

[Abbas17]

[KN] In a planned economy, the government or a central authority exercises significant control over the allocation of resources, production, pricing, and distribution of goods and services. While in a free economy, also called a market economy, economic decisions are primarily driven by market forces, with minimal government intervention.
[AN] In a planned economy the government typically determines what to produce, how much to produce, and who receives the products.
[AN+] In a free economy producers and consumers make choices based on supply and demand, and prices are typically determined by the market.

[KN] In a planned economy resources are owned and controlled by govt. whereas in a FME private individuals own are control all the resources
[AN] therefore in a planned economy more resources are devoted for welfare of the society .On contrary in FME private firms are likely to produce what is more in demand
[AN] therefore it takes time for a planned economy to shift its resources quickly and may make businesses inefficient however FME can easily reallocate resources to save time and cost

[Hussain Asghar]

[KN] In the free market economy the the induvial are the owners where as in the planned economy all the resources are under the government
[AN] in planned economy the government decides what to produce and what is better for the public whereas in a free market economy the producers produce what ever is demands
[AN+] thus in planned economy the merit goods are produced and on free market economy there is no one to stop the production of de merit goods

[KN]high amount of wastage of in planned economy whereas the lowest wastage in free economy
[AN] the governments many aim is not to gain profit so wastage is not concern where as in free market economy their main aim is to produce profit so they will be highest efficient as possible
[AN+]Thus this shows that they have different aims