WORLD HISTORY

Detailed explanation-1: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention.

Detailed explanation-2: -A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn’t rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.

Detailed explanation-3: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

Detailed explanation-4: -Countries like Cuba, China, and the previous USSR are practical examples of this command economy system. Such economies are also known as Planned Economies because the government plans all the forces of the economy, nothing is decided by the free market. In such a planned economy there cannot be any competition.