All countries have mixed economies. Identify 2 ways the US exhibits elements of a Market Economy and 2 ways the US exhibits elements of a Command Economy. Explain your answer in complete sentences.

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05-06-2021
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All countries have mixed economies. Identify 2 ways the US exhibits elements of a Market Economy and 2 ways the US exhibits elements of a Command Economy. Explain your answer in complete sentences.

Sagot :

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stanfordgoddy stanfordgoddy · Answer 1 · 2021-06-07T18:12:22-04:00

Explanation:

To begin, note that the term market economy is used to basically describe an economy where what is been produced and the prices of the products are determined not by the government but by privately owned businesses (through demand and supply factors).

While the term command economy refers to a situation where the government alone decides prices, what to produce and how much to be produced.

Market Economy example:

the prices of cars, automobiles are decided by the manufacturers, not the government.
prices of most household commodities are decided by the demand and supply factors.

Command Economy example:

federal spending decided by government alone
gas/electricity prices may be regulated by government.

All countries have mixed economies. Identify 2 ways the US exhibits elements of a Market Economy and 2 ways the US exhibits elements of a Command Economy. Explain your answer in complete sentences.

Sagot :

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