Which of the following is a fundamental difference between a "command economy" and a "market economy"?
A)Command economies are more efficient in the allocation of resources, while market economies are less efficient in the allocation of resources.
B)Command economies face severe scarcity of goods and services, while market economies have adequate goods and services for consumption.
C)Command economies are less prone to inflation, while market economies are highly vulnerable to inflation.
D)Production and distribution decisions are made by central planners in command economies, while production and distribution are made by market forces in market economies.
E)Command economies have a decentralized system, while market economies are highly centralized.

Question

Quizplus · Accepted Answer

The fundamental difference between a "command economy" and a "market economy" is that in command economies, production and distribution decisions are made by central planners, while in market economies, production and distribution decisions are made by market forces. In command economies, the government or a central authority determines what goods and services will be produced and how they will be distributed, while in market economies, the consumers and producers make these decisions based on supply and demand.

Which of the Following Is a Fundamental Difference Between a "Command