Question

Look at the statement and answer the question below:

“Businesses can make their own decisions about what to produce.”



What economy does this sound more like?

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Group of answer choices

Traditional Economy

Market Economy

Command Economy

Flag question: Question 2
Question 250 pts
Look at the statement and answer the question below:

“The government decides what will be produced and how much it will cost.”



What economy does this sound more like?

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Group of answer choices

Traditional Economy

Market Economy

Command Economy

Flag question: Question 3
Question 3100 pts
Explain your reasons for selecting your answers to number 1 and 2.

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Answer 1

1) Market Economy

2) Command Economy

3) Explanations
- Market Economy (Q1): In a market system private businesses and consumers make most economic decisions. Firms choose what to produce based on profit incentives and consumer demand, and prices are set by supply and demand rather than by the government.
- Command Economy (Q2): In a command system the government or central planners control resources and make decisions about what goods are produced, in what quantities, and often set prices. Individual businesses have little or no freedom to choose production.
- (Why not Traditional?) A traditional economy bases production decisions on customs, habits, and subsistence needs, not on independent business choice or central government planning.