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).
In which economic system does the government make most major decisions about what to produce?
planned economy
In a planned economy, the government makes most decisions about what will be produced and what the prices will be, and consumers react passively to that plan. Most economies in the real world are mixed; they combine elements of command and market systems.
In which economic system does the government make all the decisions on what is produced and how much is produced?
command economy
A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.
Which is economic system leaves production decisions completely up to the producers?
Which economic system leaves production decisions completely up to the producers? free-market economy According to the circular-flow model, which is something consumers do that influences producers? purchase goods and services Which results from the fact that a free-market system is based on the free choices of consumers and producers?
Who are the producers in a command economy?
In a command economy, who tells producers what and how much to produce? government planners Which is not the job of the government in a free-market system? guaranteeing equality YOU MIGHT ALSO LIKE… 34 Principles of Economics TextbookMediaPremium $23.99 1.06 Different Ways to Play (Part 2) 10 terms tyradical
How does production take place in a capitalist system?
In a capitalist economic system: Production is carried out to maximize private profit. Decisions regarding investment and the use of the means of production are determined by competing business owners in the marketplace. Production takes place within the process of capital accumulation.
How are economic decisions made in a free market economy?
• Economic decisions are made based on the changes in prices that occur as buyers & sellers interact in the market place. • The government has no control over the economy; private citizens answer all economic questions. • In a truly free market economy, the government would not be involved at all.
