What are the differences between a free market and a planned economy?

Answer by  mem4dr (1378)

In a free market economy, government plays a limited role. The economy is driven by the market interactions of individuals. In a planned economy, the government plays the central role - the government chooses how much to supply of various goods instead of letting the market determine that.

Answer by  tamarawilhite (17883)

In a planned economy, the government manages the means of production. This can be through quotas or a master plan with all production owned by the state. In a planned economy, the government owns all land, capital equipment, and property. In a free economy, these assets are privately owned. Production is also a private choice.