ECONOMICS
PROPERTY RIGHTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Compared to a planned economy, a market economy has a higher inflation rate.
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Compared to a planned economy, more resources are privately owned in a market economy.
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The income gap between the rich and the poor in a market economy is larger than that in a planned economy.
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The unemployment rate in a market economy is higher than that in a planned economy.
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Detailed explanation-1: -A centrally planned economy is the one in which economic activities (production, consumption and exchange) are governed by the government. Market economy is the one in which economic activities (production, consumption and exchange) are governed by the market forces of supply and demand.
Detailed explanation-2: -Which of the following best explains the difference between a market economy and a planned economy? A) In a planned economy, consumers have little choice in where people work or what they purchase or pay. In a market economy, there is more choice in where people work or what they purchase or pay.
Detailed explanation-3: -noun. : an economic system in which the elements of an economy (as labor, capital, and natural resources) are subject to government control and regulation designed to achieve the objectives of a comprehensive plan of economic development compare free economy, free enterprise.
Detailed explanation-4: -Features or characteristics of a planned economy Usually, prices are decided by the price control mechanism. Production is planned for at least five or ten years in advance. Involves a high level of bureaucracy to manage and plan economic decisions. A higher degree of political control.