What Is the Difference Between a Command Economy and a Market

question 115

Multiple Choice

What is the difference between a command economy and a market economy?

• A) A command economy is found only in communist countries, while a market economy is found only in capitalist countries.
• B) A command economy is more efficient than a market economy.
• C) A market economy gives greater "life satisfaction" to people.
• D) A command economy relies on centralized government control of the factors of production, while in a market economy supply and demand determine production and allocation decisions.
• E) There really are no significant differences between a command economy and a market economy.

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Definitions:

Artistic Development

The process and stages of growth in creating, understanding, and appreciating art.

Motor and Cognitive Skills

Skills related to physical movement and mental processes respectively. Motor skills include tasks like walking, while cognitive skills involve tasks like thinking and problem-solving.

Social and Sensory Skills

These skills involve the ability to interact effectively with others and to process and respond to sensory input from the environment.

Carbohydrates

A group of macronutrients including sugars, starches, and fiber, which are important sources of energy for the body.