Which situation is more likely to occur in a market economy than a command economy?

Question

(1 point)
Responses

People line up for cheap but scarce products.
People line up for cheap but scarce products.

A student is guaranteed a job out of college.
A student is guaranteed a job out of college.

An inventor designs and produces a new type of car.
An inventor designs and produces a new type of car.

A committee chooses which farms should receive new tractors.

Answer 1

The situation that is more likely to occur in a market economy than a command economy is:

An inventor designs and produces a new type of car.

In a market economy, individual entrepreneurs have the freedom to innovate and bring new products to market based on consumer demand. In contrast, in a command economy, production decisions are made by the government, which may limit innovation and entrepreneurship.