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Match each statement with the economy it best reflects(1 point)

Command economy Market economy
Prices are set by supply and demand.

Business owners make decisions about how to run their companies.

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

Legal policies are put into place that control prices.

1 answer

Here are the statements matched with the economies they best reflect:

  1. Prices are set by supply and demand. - Market economy

  2. Business owners make decisions about how to run their companies. - Market economy

  3. The government decided how much of an item should be produced. - Command economy

  4. Legal policies are put into place that control prices. - Command economy

In a market economy, supply and demand drive prices and business decisions, whereas a command economy relies on government decisions regarding production and pricing.