ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumers have few, if any, choices in the market place.
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Little government intervention.
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Also, called “capitalist” economy
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Resources are owned by individuals.
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Detailed explanation-1: -What are the characteristics of a command economy? A command economy has a small number of typical elements: A central economic plan, government ownership of the means of production, and (supposed) social equality are essential features of a command economy.
Detailed explanation-2: -The characteristics of a market system are: private property, freedom of enterprise and choice, the role of self-interest, competition, markets and prices, the reliance on technology and capital goods, specialization, use of money, and the active, but limited role of government.
Detailed explanation-3: -Political interest groups and the power struggles between them will dominate policymaking in a command economy even more than in capitalist economies because they are not constrained by market-based forms of discipline such as sovereign credit ratings or capital flight.
Detailed explanation-4: -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. Most nations operate largely as a command or market economy but all include aspects of the other.