0
Contrast how a market system and a command economy try to cope with the problem of economic scarcity?
Wiki User
∙ 11y ago
A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale. The command economy is a key feature of any communist society. China, Cuba, North Korea and the former Soviet Union are examples of countries that have command economies.
Read more: http://www.investopedia.com/terms/c/command-economy.asp#ixzz27xmMBJXEA market system is an economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority; a capitalistic economy.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
Who owns the factors of productiom and makes economic decisions in a market economy?
Individuals own the factors of production and make economic decisions in a market economy. This is in contrast to a command economy, where the government makes those decisions.
Does a command economy use ration coupons?
In times of scarcity, a command economy can use rationing, but then, it could be argued that any time rationing is used, that is a form of command economy. In better economic circumstances, command economies just use money. Since a command economy controls how much money everybody has, money then serves almost the same function as a ration coupon.
How are economic questions answered in a command economy?
discuss the basic economic problem?
What are other names for traditional economy?
command economy
How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
Who owns the factors of productiom and makes economic decisions in a market economy?
Individuals own the factors of production and make economic decisions in a market economy. This is in contrast to a command economy, where the government makes those decisions.
Does a command economy use ration coupons?
In times of scarcity, a command economy can use rationing, but then, it could be argued that any time rationing is used, that is a form of command economy. In better economic circumstances, command economies just use money. Since a command economy controls how much money everybody has, money then serves almost the same function as a ration coupon.
Who answers the three economic questions in a command economy?
The government answers the three economic questions in a command economy.
How are economic questions answered in a command economy?
discuss the basic economic problem?
What is Brazil's economic system?
command economy
What are other names for traditional economy?
command economy
What is an economic system characterized by a central authority which makes major economic decisions?
Command Economy. :D
The Four economic systems?
There are four major types of economic systems. This includes the mixed economy, traditional economy, command economy, and market economy.
What are the three kinds of economic systems?
Market economy,traditional economy,command economy and mixed economy
Which of these is a correct description of one of the ways in which a command economy differs from a market economy?
In a command economy, individuals have less economic freedom.
The most basic economic system is?
command economy
