Question

Which economic systems is based on a command economy as opposed to a free market economy

Answer 1

The economic system that is strictly based on command economy is the communism. This economic system is one where the government is the one that decides everything. How much is produced, what is produced, when it is produced, it is all planned by the government. The private sector doesn't exist, and everyone in this type of economic system is treated equal and has same income.

The economic system that is based on market economy is the capitalism. This economic system is one where everything is owned by the private sector, whit the government not interfering in the businesses. The private businesses are able to decide what, when , and how much to produce, and their only ''judge'' are the consumers.