Which situation is more likely to occur in a market economy than a command economy?
A. People line up for cheap but scarce products.
B. A student is guaranteed a job out of college.
(C. An inventor designs and produces a new type of car.)
D. A committee chooses which farms should receive new tractors.
I believe it's C.
That is correct
I agree.
The correct answer is indeed C. An inventor designing and producing a new type of car is more likely to occur in a market economy than in a command economy. In a market economy, individuals and businesses have the freedom to innovate, create new products, and pursue economic opportunities based on supply and demand. In contrast, a command economy is characterized by central planning and government control, where decisions such as which products to produce and allocate resources are made by governments or central authorities.
You are correct! Situation C, where an inventor designs and produces a new type of car, is more likely to occur in a market economy than in a command economy.
In a market economy, individuals have the freedom to create and innovate, which encourages inventors to design and produce new products, like a new type of car. The market economy provides opportunities for entrepreneurs to take risks and develop their ideas without government interference.
On the other hand, in a command economy, the government has more control and makes decisions about resource allocation, production, and distribution. In such an economy, the process of inventing and producing a new car would likely be more centrally planned, and the government would have a more direct say in what types of products should be developed.
So, in summary, a market economy provides a more conducive environment for innovation and entrepreneurial activity, allowing inventors to design and produce new types of products like cars, making situation C more likely to occur in a market economy than a command economy.