Which of the following best distinguishes a "command economy" from a "market economy?"
A)A command economy is more efficient than a market economy because decision making is centralized.
B)There is scarcity in command economies, but not in market economies.
C)Command economies are less prone to inflation than are market economies.
D)Production and distribution decisions are made by central planners in a command economy, but not in a market economy.

Question

Which of the following best distinguishes a "command economy" from a "market economy?"
A)​A command economy is more efficient than a market economy because decision making is centralized.
B)​There is scarcity in command economies, but not in market economies.
C)​Command economies are less prone to inflation than are market economies.
D)​Production and distribution decisions are made by central planners in a command economy, but not in a market economy.

Quizplus · Accepted Answer

The key distinction between a command and market economy is in the decision-making process regarding production and distribution. In a command economy, central planners make these decisions, while in a market economy, they are made through the interactions of buyers and sellers in the marketplace. Options A, B, and C are incorrect as they do not accurately capture the differences between the two types of economies.

Which of the Following Best Distinguishes a "Command Economy" from a "Market