0
- Central Planning: A centrally planned economy relies on a party in power to decide what resources should be allocated to various demands as they see fit.
- Free Market: A free market economy relies on prices to determine where demand should be filled and to what extent.
Because of these differences, an economy that is centrally planned is usually inefficient in their allocation of resources to each market. They decide beforehand which areas will get resources, restricting the supply and setting a price with no knowledge about the consumer's choice.
A free market is much more adaptable, using price as a communicator, supply, demand and price interact to form equilibriums that satisfy market clearing outcomes. This system is much more efficient in that the people who value the goods most are able to get them. This is the idea, it doesn't always work perfectly.
What else can I help you with?
How does command economy's differ from a market economy?
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
How did the command economy under Stalin differ from a capatalist economy?
A command economy is a system where the government controls economic activity and the production and distribution of goods. In a capitalist economy, such things are determined by market forces.
What are the three types of economy?
Command economy, market economy, and traditional economy. The United States of America is a Market economy.
How does a command economy differ from a market economy?
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
What do you call an economy that is both partly command and market?
When an economy is partly command and partly market, is called a mixed economy.
How does a market economy differ from a command economy?
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
How does command economy's differ from a market economy?
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
How did the command economy under Stalin differ from a capatalist economy?
A command economy is a system where the government controls economic activity and the production and distribution of goods. In a capitalist economy, such things are determined by market forces.
What are the three types of economy?
Command economy, market economy, and traditional economy. The United States of America is a Market economy.
Is Bahrains economy command or market?
a market economy
Is Greece market or command economy?
Market economy
What do you call an economy that is both partly command and market?
When an economy is partly command and partly market, is called a mixed economy.
How does a command economy differ from a market economy?
In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.
Does Serbia have a traditional command or market economy?
It has market economy
Is turkey a market economy or command economy?
mixed market
Does Belgium have a command or market economy?
Belgium has a market economy.
Does Singapore have a command or free market economy?
A market economy
