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Modern economies in the West are mixed and rely mainly on the market but with a large doze of government intervention. The optimal level of government
intervention remains a problem which is of interest to economists.
The degree of government restrictions differs greatly between countries that have command economies and countries that have free market economies. In the former, resources are allocated by central government planning. In the latter, there is not any government regulation of the consumption, production, and exchange of goods. Between the two main types lies the mixed economy where market and government are both of importance.
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