86.6k views
16 votes
Compare and contrast the principal characteristics of a market economy with those of a command economy

User Gmn
by
4.6k points

1 Answer

11 votes

Answer: Market economy utilizes private ownership as means of production, while in a command economy, governments own the factors of production such as capital, land and resources.

Step-by-step explanation:

Market economy; is an economic system where decisions regarding investment, production and distribution are controlled by the price signals created by forces of supply and demand.

Demand economy; is an economic system where the consumers desire to buy goods and services and their willingness to pay a particular price for them. An increase in the process of a good or service will decrease the quantity demanded

Market economy utilizes private ownership as means of production, while in a command economy, governments own the factors of production such as capital, land and resources.

User Michael Ochs
by
5.1k points