When comparing the three broad types of economic systems, it can be said that for a pure market economy to function efficiently, product supply must be restricted. in a command economy, state-owned enterprises have little incentive to control costs and be efficient. the sole role of government in a command economy is to encourage vigorous free and fair competition between private producers. mixed economies were once uncommon throughout much of the world, although they are becoming more popular now. production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

These statements are correct:

In a command economy, state-owned enterprises have little incentive to control costs and be efficient.

In a command economy, the absence of competition means that state-owned enterprises do not have incentive to be efficient. This is because In command economies, these companies are most of the time monopolies who have a safer market to sell their products, because consumers lack choice.

Mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.

Most economies now are mixed: in part free market economies, in part command economies. For example, in most developed countries, most sectors are left for private companies to compete, but a few areas are still directly controlled by the government, either fully or partially (for example: the healthcare sector, and education).

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