ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a command economy, the government decides how the goods will be produced and distributed. In a market economy, decisions regarding production (making a product) and consumption (when something is used) result from the interaction between consumers and producers.

Detailed explanation-2: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.

Detailed explanation-3: -A command economy is an economic system in which the government, or the central planner, determines what goods and services should be produced, the supply that should be produced, and the price of goods and services.

Detailed explanation-4: -Sometimes called a planned economy, in a command economy, the government decides which goods and services to produce, the production and distribution method, and the prices of goods and services. The government is the central planner.

Detailed explanation-5: -Which of the following is true about market economies? Market economies are more efficient than centrally-planned economies.