ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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in a market economy the government make the decisions but in a command economy they don’t
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in a market economy the government doesn’t control it but in a command economy they do.
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in a command economy they tell other markets what to do
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in a command economy they tell the market economy what to do
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Detailed explanation-1: -Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production and set prices and production schedules. In a market economy, prices are set by supply and demand.
Detailed explanation-2: -The major difference between a command economy and a market economy is that a command economy the government controls what is produced and how it will be shared and in a market economy people have more freedom and can make their own decisions.
Detailed explanation-3: -A command economy is an economy in which the market system is fully controlled by the government, in contrast to a free market economy, which is a market system in which the pricing of goods and services is primarily determined by the sellers and buyers, and is therefore based on demand and supply.
Detailed explanation-4: -In a command economy, economic decisions concerning production and pricing rest with a central authority, such as a government. A market economy promotes free competition among market participants. Notable benefits of a market economy are increased efficiency, production, and innovation.
Detailed explanation-5: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.