II. Complete the open dialogue and learn it by heart

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To my mind not all economic systems are the same. They differ from country to country and each country has its own particular features.

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As far as I know in countries where individual goals are given primacy over collective goals, we are more likely to find free market economic systems.

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On the contrary, in countries where collective goals are given prominence, the state may have taken control over many enterprises, while markets in such countries are likely to be restricted rather than free.

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As far as I am concerned we can identify four broad types of economic systems: a market economy, a command economy, a mixed economy, and a state-directed economy.

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The matter is that in a pure market economy all productive activities are privately owned.

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As a rule, the goods and services that a country produces, and the quantity in which they are produced, are not planned by anyone.

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To my mind the role of government in a market economy is to encourage vigorous competition between private producers.

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I think that in a pure command economy the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all planned by the government.

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I fully agree with you that in a pure command economy all businesses are state owned.

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I don't think so. Historically, command economies were found in communist countries where collectivist goals were given priority over individual goals.

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In any case in a command economy, state-owned enterprises have little incentive to control costs and be efficient, because they cannot go out of business.

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As far as I remember mixed economies can be found between market economies and command economies.

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I suppose that mixed economies are relatively common in Western Europe although they are becoming less so.

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I can’t agree with you. A state-directed economy differs from a mixed economy in so far as the state does not routinely take private enterprises into public ownership.

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In my opinion it nurtures private enterprise but proactively directs investments made by private firms in accordance with the goals of its industrial policy.