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77julia77 [94]
4 years ago
11

Briefly explain the difference between market economies

Social Studies
1 answer:
Stells [14]4 years ago
3 0

Answer:

In a centrally planned economy, major economic decisions are made by a central authority. Centrally planned economies stand in contrast to market economies where large numbers of individual consumers and profit-seeking private firms operate most or all of the economy. In a theoretical market economy, supply and demand through free competition should determine prices. Supply and demand also decide investment decisions, production, and distribution. The central plan sets the priorities for the production of all goods and services. That includes quotas and price controls. Its goal is to supply enough food, housing, and other basics to meet the needs of everyone in the country.

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