Question

Which events would be more common in the command economy than a market economy? Select all that apply.(Select 2)

Answer 1

Answer:

A. People with lower incomes have the same goods as the people with higher income.

B. People wait in long lines for cheap goods.

Explanation:

The command economy is a type of system in which the government plays the leading role in planning and regulating goods and services to be produced by the country. The state authority determines the type of goods and services to be produced and supplied, as well as the quantity and price that will be offered on the market. If this kind of economy is done in the right way, society favors social welfare and equity rather than profiting in this scenario, low-income people would have opportunities to own the same goods as higher-income people.

However, generally this kind of economy generates great shortage of products making people have great difficulties waiting in long lines for cheap goods.