Question

A difference between command and market economic systems is that command economic systems


have a legal system that provides incentives to produce, whereas market economic systems do not


a

ensure efficiency, whereas market economic systems ensure equity


b

limit individual property rights, whereas market economic systems protect individual property rights


c

maximize producer and consumer surplus, whereas market economic systems do not


d

regulate production but not distribution, whereas market economic systems regulate both production and distribution

Answer 1

c

Command (centrally planned) economies typically limit private property and place resource ownership and allocation under the state, while market economies protect individual property rights and rely on private ownership and markets to allocate resources.