What is the main difference between a market economy and a command economy?

Answer 1

The main difference between Capitalism and Command economy is that capitalism involved private enterprises where businesses are owned by private individuals while comman economies have public enterprises where the governemnt controls things including businesses and production.

A command economy is much more government controlled while a capitalism (or market economy) has much less government intervention. -dylan-

Answer 2

Economic systems exist to determine how scarce resources will be allocated to meet the wants and needs of the populace. There are three primary systems. There is the traditional system. In this system choices are made based on how resources were allocated in the past. This works as long as the availability of resources, and the level of demand doesn't change. As long as these two variables are unaltered the traditional system can provide for the needs of a populace indefinitely. However traditional systems are poorly equipped to adapt when those variables do eventually change. The second system is the command system. In this type of economy decisions about how resources will be utilized to meet the wants and needs of the populace are made by a central planning group. This group may be a small group of elites, or a single dictator. The choices are made and resources are allocated based on the central planning groups agenda. This system can effectively provide for the wants and needs of a populace, however it lacks the basic individual freedom which people naturally desire. The third system is the market system. In this type of economy choices are made based on the laws of supply and demand. Personal choices made by consumers drive the growth and decline of industries and companies who in turn make decisions about the allocation of resources in an effort to succeed. The advantage of this system is that it provides great benefits for innovation and efforts to increase efficiency. The disadvantage is that it can have serious negative outcomes for "losers". It also encourages business leaders to mistreat labor since their ability to gather the resources necessary to compete is linked to their ability to maximize profitability. Some have argued that the market economic system inherently leads to a communistic or socialistic economic system where the means of production are held by the community and choices about how to allocate resources are made democratically. The reality of all 20th century communist countries is that they have relied on the command system. Because of this the socialist/communist economic system is considered an example of command economics, not a fourth economic system.

Answer 3

Who gives a f**k. Nobody cares about the economy. If you do you are a ho**