Drag and drop each statement into the box with the economy it best reflects.

Question

command economy

market economy

Responses that go in the boxes:
Business owners make decisions about how to run their companies.

The government decides how much of an item should be produced.

Legal policies are put into place that control prices.

prices are set by supply and demand

Answer 1

Here’s how the statements align with each type of economy:

Command Economy:

• The government decides how much of an item should be produced.
• Legal policies are put into place that control prices.

Market Economy:

• Business owners make decisions about how to run their companies.
• Prices are set by supply and demand.