Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

toward the command principle. When we speak of one as being a market
economy, we mean only that the degree of the mix is weighted heavily
toward decentralized decision making.


Although no country offers an example of either system working alone,
some economies, such as those of Canada, the United States, France, and
Japan, rely much more heavily on market decisions than others, such as
the economies of China, North Korea, and Cuba. Yet even in Canada, the
command principle has some sway. Crown corporations, legislated
minimum wages, rules and regulations for environmental protection,
quotas on some agricultural outputs, and restrictions on the import of
some items are just a few examples of how the government plays an
active role in the economy.

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