What is the difference between a market economy and a command

economy?

O

A. A market economy is determined by consumers and a command

economy is determined by central authority.

B. A market economy is determined by central authority and a

command economy is determined by consumers.

O

C. A market economy is determined by consumers while a command

economy is determined by both consumers and central authority.

O

D. A market economy is determined by both central authority and

consumers while a command economy is determined by only

consumers.

The correct answer is letter "A": A market economy is determined by consumers and a command economy is determined by central authority.

Explanation:

In a market economy, economic decisions and prices are determined not by central planning but by market forces. Market forces refer to the cumulative impact of all decisions made by individuals acting in the market, such as consumers and producers.

A command economy is one in which the government controls the economy, acts as the central planner, enforces production quotas and levels of distribution, and sets prices.

A. A market economy is determined by consumers and a command economy is determined by central authority.

Explanation:

A market economy is driven by customers in the form of demand and the sellers in market supply to satisfy the demand.

Command economy is driven by command, customers do not decide what to demand and when, only central authority supplies what they see fit.