Market economy
market economy
In a {Traditional Economy}, economic decisions are based on customs handed down from generation to generation. In a {Market Economy} individuals make their own decisions about what to produce how to produce it & for whom to produce it.
Market Economy
In a centrally-run economy, decisions about quantities and prices of goods and services to be provided are made by a small group, usually government bureaucrats. The opposite is a market economy, where such decisions are made - in theory - by private producers (sellers) and consumers (buyers). Neither type exists in its pure form.
A command economy answers the question of what to produce through the government. It is the role of the government to make key critical decisions in the economy.
Individuals decide what to produce and how to product it.
In a {Traditional Economy}, economic decisions are based on customs handed down from generation to generation. In a {Market Economy} individuals make their own decisions about what to produce how to produce it & for whom to produce it.
In a {Traditional Economy}, economic decisions are based on customs handed down from generation to generation. In a {Market Economy} individuals make their own decisions about what to produce how to produce it & for whom to produce it.
Market Economy
In a centrally-run economy, decisions about quantities and prices of goods and services to be provided are made by a small group, usually government bureaucrats. The opposite is a market economy, where such decisions are made - in theory - by private producers (sellers) and consumers (buyers). Neither type exists in its pure form.
A command economy answers the question of what to produce through the government. It is the role of the government to make key critical decisions in the economy.
In a mixed economy, the decisions regarding what to produce are affected by supply and demand. Producers will strive to make what is on demand so that they can make profits.
government decisions
Individuals decide what to produce and how to product it.
In a command economy, the government makes the economic decisions. This means that they control industry (including manufacturing and agriculture), as opposed to being controlled by the markets and the people. The government decides what goods to produce and how to distribute them.
In a command economy, the government makes the economic decisions. This means that they control industry (including manufacturing and agriculture), as opposed to being controlled by the markets and the people. The government decides what goods to produce and how to distribute them.
=Vietnam can be demonstrated as a command economy because it is a dictatorship and almost all of the decisions are made by the government, leaving no choice for individuals rights. In the command economy the government decides what to produce, distribute and consume. The government also decides the price of the product, how to make the product, how to sell the product, and also who to sell it to. Basically in a command economy there is no freedom. China used to have a command economy, but it no longer does not. Saudi Arabia is another example of a command economy too. This is how Vietnam can be demonstrated as a command economy.=
individuals influence directly what is produced, marketed, and consumed. Individuals do this by spending money on what they want. This then directs producers to produce goods and services that individuals will consume.