Final answer:
In centrally planned economies, the government makes all economic decisions, while in market economies, households and firms are responsible for these decisions based on demand and market forces.
Step-by-step explanation:
Centrally planned economies allocate resources based on decisions by government, while market economies answer these questions through decisions made by households and firms. In a centrally planned or command economy, the government owns resources and businesses, making all the economic decisions. Conversely, market economies have a decentralized structure where private enterprise prevails; private individuals or groups own and operate the means of production. Decision-making in market economies is influenced by market forces where businesses supply goods and services based on demand. Income is determined by one's ability to produce something valued by society.