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LekaFEV [45]
3 years ago
8

How does a Free Market System and Centrally Planned System impact consumers and producers differently?

Social Studies
1 answer:
Lapatulllka [165]3 years ago
6 0

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

A Free Market System and Centrally Planned System impact consumers and producers differently in that in the Free Market System, it is the supply and demand, the factors that decide the price of goods and services. On the other hand, in a Centrally Planned system, it is the intervention of the state -the government- which decides the price of the goods and services in a fixed way.

In total opposition to a free-market economy where individuals promote capitalist ideas to invest money and create companies to be rich, in a  central system or command economy is the state the one that owns the means of production. The central government decides the kind of products to be produced, the price of the products, how to produce the goods, and the amount that is going to be produced.

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Explanation:

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