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18 September, 08:09

What is the main difference between command and market economies?

In a command economy only, the government owns most of the businesses and means to make money.

In a market economy, the government decides the prices to make sure everyone has equal ability to pay for items;

in a command economy, all items are provided.

A command economy is reflective of government regulation, while a market economy is reflective of what

consumers want and need.

Competition only hurts the market economy as companies change prices and goods to meet consumer wants.

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  1. 18 September, 11:21
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    Key Takeaways

    Explanation:

    Market economies utilize private ownership of the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. In reality, all economies blend aspects of the two.
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