What is the difference between the command and market economics systems/?
In a command economy the government decides who produces, what is produced and who it is produced for. The means of production are owned by the government. These are factories, land, natural resources and frankly people. No wonder people tore down the berlin wall the moment the guards stooped shooting people. In a market economy people choose which job they want to do (subject to someone being willing to employ them in that job), and what they want to buy. Firms choose who to employ, what to make and who to sell to. All these decisions are taken to maximize the benefit to the person making the decision. This leads to (usually) the most efficient allocation of goods. This was described by Adam Smith (the father of economics) as the invisible hand of the market. If people want nails, someone will make nails. If someone doesn’t make enough nails, the price of nails will rise. This will cause someone else to make nails, ensuring a sufficient supply of nails. In theory the free market is be
