A market economy is one in which decisions regarding investment, production, and distribution are based on supply and demand, with little or no government intervention. In contrast, a command economy (or centrally planned economy) is one in which the government makes all of the decisions about the allocation of resources and production. In a command economy, the government often dictates what is produced, how much is produced, and at what price, in an effort to control the economy and distribute resources as it sees fit.
A
market economy
is one in which there is little or no government intervention. A
is one in which the government makes all of the decisions about production and resources.
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