What is the difference between market and command economy?
An economy may be defined as the state of a country or region in terms of the production and consumption of goods and services, and the supply of money. A market economy (also called a free market economy, free enterprise economy) is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system . On the other hand, a command economy (also known as planned economy) is an economic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income . There is another type of economy, known as Mixed economy. Mixed Economy is combination of free market and command economy. However, this essay will analyze the main key difference between command and free market. A command system is one in which decision making is centralized. In a command economy, the government controls the factors of production and makes all
