ECONOMICS
TECHNOLOGY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Market economies discourage free enterprise.
|
|
|
In a market economy, the government sets prices.
|
|
|
Command economies tend to have a higher per capita GDP
|
|
|
In a command economy, individuals have less economic freedom.
|
Detailed explanation-1: -Market Economy is one in which the interest and supply powers choose the development of products and services and their costs. Command economy alludes to a financial framework, where every single monetary choice is taken by the public authority, and enterprises are publicly owned.
Detailed explanation-2: -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-3: -A command economy is one in which a centralized government controls the means of production and determines output levels. Command economies stand in contrast to free-market economies, those in which the law of supply and demand determines output and prices.
Detailed explanation-4: -A command economy does not allow market forces like supply and demand to determine what, how much, and at what price they should produce goods and services. Instead, a central government plans, organizes, and controls all economic activities, discouraging market competition.
Detailed explanation-5: -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.