Compare the Advantages and Disadvantages of a Planned Economy and a Free-

question 66

Essay

Compare the advantages and disadvantages of a planned economy and a free- market economy.

---

Definitions:

Net Income

The amount of money a company has left after all expenses, taxes, and costs have been subtracted from total revenue.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' share.

Expenses

are the costs incurred in the operation of a business or the execution of a project, including money spent on goods, services, and other necessary items.

Return on Equity

A financial ratio measuring the profitability of a company expressed as a percentage of equity, indicating how effectively a company uses its equity investments to generate profits.