Question

Which events would be more common in a command economy than a market economy select all that apply

Answer 1

In a command economy, the government makes all decisions regarding the production and distribution of goods and services, while in a market economy, these decisions are primarily made by individuals and businesses through supply and demand. Here are some events that would be more common in a command economy than in a market economy:

1. **Centralized Planning and Allocation**: Decisions about what goods to produce and in what quantities are made by a central authority rather than determined by consumer demand.

2. **Price Controls**: The government often sets prices for goods and services, which can lead to shortages or surpluses.

3. **Resource Rationing**: Limited resources may be allocated via quotas or rationing systems determined by the government.

4. **Lack of Consumer Choice**: Consumers have fewer choices regarding products and services since production is determined by government directives rather than consumer preferences.

5. **Employment Assignments**: The government may assign jobs to individuals rather than allowing them to choose based on personal interest or market demand.

6. **State Ownership of Property**: Most, if not all, means of production are owned and controlled by the government rather than by private individuals or companies.

7. **Limited Entrepreneurial Activity**: There is typically less independent entrepreneurship because the government restricts private business activities.

8. **Emphasis on Full Employment**: Policies may prioritize employment over efficiency or innovation, potentially resulting in overstaffed industries.

These events reflect the fundamental differences in how economies operate under command and market systems.