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:

Buyer Behavior

The actions and decision-making processes of individuals or groups as they purchase goods or services.

Organizational Buying Process

The problem-solving procedure the firm uses to meet its goals and objectives as it relates to making purchases.

Decision Criteria

involves the standards or benchmarks used to evaluate options and make choices, particularly in business or policy decisions.

Alternatives

Different options or choices available to consumers or decision-makers in any given scenario.