The type of economy dictates who makes the decisions about production and consumption.
Explanation:
There are multiple different economic types, with the most popular in the world being the market economy, mixed-market economy, socialist economy, and command economy. Some types of economy have the governments co control the businesses, thus all of the production, and in accordance to it they dictate what the consumers will be getting and at what price. On the other hand, some economic types allow freedom in the ownership of the businesses and what they produce, thus competition. This results in much greater choice for the consumers, and they choose the best and cheapest products.
- The command economy is an economy type where the government dictates the whole production and the whole consumption.
- The socialist economy is a transitional economy toward command one, where the government is the dominant force on the market, with small private business sector existing which is obligated to collaborate.
- The mixed-market economy is an economy type where the government is dictating only the production and consumption of the most important national resources, while the private business sector is allowed to operate, so the people are able to diced for the consumption for some things, and not for others.
- The market economy is an economy type where the private business sector dictates the production, there is lot of competition, and the consumers are the ones that decide what to buy and what not, thus influence the production of goods.
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