The essential difference between a command economy and a market economy is that in a market economy

a

the prices of products and resources are largely determined by government regulation of businesses.

b

buyers and sellers determine resource allocation.

c

central planning creates an effective incentive system for consumers and producers.

d

shortages occur more often than surpluses.

Question

Isabel Donovan

Business

4 February, 21:55

The essential difference between a command economy and a market economy is that in a market economy

a

the prices of products and resources are largely determined by government regulation of businesses.

b

buyers and sellers determine resource allocation.

c

central planning creates an effective incentive system for consumers and producers.

d

shortages occur more often than surpluses.

+3

Answers (1)

Know the Answer?

Elisa · Answer 1

b buyers and sellers determine resource allocation.

Explanation:

The market is regulated by the interaction between Sellers and Buyers. However, in a Command economy the market is regulated by the government policies.