What is the main difference between command and market economies?

In a command economy only, the government owns most of the businesses and means to make money.

In a market economy, the government decides the prices to make sure everyone has equal ability to pay for items;

in a command economy, all items are provided.

A command economy is reflective of government regulation, while a market economy is reflective of what

consumers want and need.

Competition only hurts the market economy as companies change prices and goods to meet consumer wants.

Question

Social Studies

Kenneth Merritt

26 August, 04:12

What is the main difference between command and market economies?

In a command economy only, the government owns most of the businesses and means to make money.

In a market economy, the government decides the prices to make sure everyone has equal ability to pay for items;

in a command economy, all items are provided.

A command economy is reflective of government regulation, while a market economy is reflective of what

consumers want and need.

Competition only hurts the market economy as companies change prices and goods to meet consumer wants.

+2

Answers (1)

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Frankie Simmons · Answer 1

Key Takeaways

Explanation:

Market economies utilize private ownership of the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. In reality, all economies blend aspects of the two.