Which situation is more likely to occur in a Market Economy than a Command Economy?(1 point)
Responses
a citizen designs a new game and opens a store to sell it
a citizen designs a new game and opens a store to sell it
people line up for scarce products.
people line up for scarce products.
the government controls all aspects of business
the government controls all aspects of business
government sets prices on good sold
a citizen designs a new game and opens a store to sell it
The situation "a citizen designs a new game and opens a store to sell it" is more likely to occur in a Market Economy than a Command Economy.
In a Market Economy, the situation where a citizen designs a new game and opens a store to sell it is more likely to occur than in a Command Economy. This is because a Market Economy allows individuals to freely engage in business activities and make independent decisions on what goods or services to produce and sell. Citizens in a Market Economy have the freedom to innovate, create new products, and start their own businesses based on consumer demand and market opportunities. The market determines the success and profitability of their venture.
On the other hand, in a Command Economy, such as a centrally planned or socialist economy, the government controls all aspects of business, including what goods or services are produced and sold. The government decides the allocation of resources, sets production targets, and may even determine which businesses can operate. This restricts the ability of individuals to start their own businesses based on personal ideas or entrepreneurial ventures.
Additionally, the situation where people line up for scarce products is also more likely to occur in a Market Economy compared to a Command Economy. In a Market Economy, the principles of supply and demand determine the availability and pricing of goods. If a product is scarce due to limited supply or high demand, people may need to wait in line to get access to it. In a Command Economy, where the government controls the production and distribution of goods, shortages and long queues for scarce products are less common as the government can regulate and influence production levels and distribution mechanisms.
Lastly, in a Market Economy, the government does not typically set prices on goods sold. Prices are determined by the interaction of supply and demand in the market. On the other hand, in a Command Economy, the government often sets prices on goods as part of their control over the economy. The government may use price controls to ensure affordability, control inflation, or promote the distribution of resources according to its objectives.