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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