The primary distinction between a free and command economy is the degree to which the government determines what can be produced and what prices will be charged. In a free market, these determinations are made by the collective decisions of the market itself (which is comprised of producers and consumers).
Who are the 4 economic decision makers?
Chapter 4 Economic Decision-Makers: Households, Firms, Governments, and the Rest of the World. Macroeconomics: Study how decisions of individuals coordinated by markets in the entire economy join together to determine economy-wide aggregates like employment and growth.
Which is economic system gives producers and consumers the..?
Which of the following describes how matter moves between producers, consumers, and decomposers in an ecosystem? one-way flow from producers to consumers to decomposers one-way flow from decomposers to consumers to producer cyclic In what way do mixed and market economies support the ideals of democracy?
How does the government control the means of production?
Command Economy the government controls the means of production, property, and makes all decisions about production and consumption. Market Economy (Free Enterprise System, Capitalism) producers and consumers make economic decisions and the factors of production are privately owned Mixed Market Economy
Which is the best description of an economic system?
market economy. economic system in which the central government makes all decisions on the production and consumption of goods and services. mixed economy. market-based economic system with limited government involvement.
How does the central government make economic decisions?
economic system in which the central government makes all decisions on the production and consumption of goods and services collective large farm leased from the state to groups of peasant farmers command economy
