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yulyashka [42]
4 years ago
11

What are the main differences between a Market Economy and a Command Economy? Which type of government do you think would be ali

gned with each?
Social Studies
1 answer:
Veseljchak [2.6K]4 years ago
6 0

Answer and Explanation

In  market economy is system is where goods and services are freely exchanged in an open market. The features in this market are that  producers and consumers are multivated by the profit they get because they are engaged to each other directly. They are also free to produce, purchase and sell goods and services. Since the all the resources are owned by producers and consumers, they determine form of supply and the demand of outputs and  the government does not intervene in the market except to ensure that the market remains free.

While in a Command Economy System this the type of economy system where the government controls everything in the market .Here the governments controls the production of goods and services and also decides which goods and services to produce. Unlike in the market economy in command economy decisions are made by the government  because it owns many resources and prices do not adjust based on the supply and demand. SO salaries and employment rates and goods prices are determined by a centralized body.

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