Market Economy Vs Command Economy Essay

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What is the major difference between a command economy and a market economy? The major difference between a command economy and a market economy is who makes the decisions. In a command economy, the government decides what to produce, who to produce for, and how to produce. In a market economy, the people get to decide what to produce, who to produce for, and how to produce. The major difference lies with the control and who is in charge. Which of the characteristics of a market economy do you believe is the most Important? Explain I think that private enterprise is the most important characteristic. Private enterprise is the individual’s right to own a business. The government sets some restrictions but ultimately people are granted freedom in business. Without private enterprise, people in America would not even have the opportunity to own a business or make profit from their business. …show more content…

Business owners could use incentives and gifts to encourage the workers. For instance, a store owner could initiate the idea that whoever brings ten new customers to the store this week will get a bonus in their pay check. Business owners could give raises, bonuses, and time off as incentives to work as hard as they can. By giving fun extras to the employees, they will feel compelled to do their best. Why do you think people make careless and uninformed decisions? People sometimes make careless and uninformed decisions. Most times, people feel rushed into making decisions without thinking it through completely. I feel the main issue is that they don’t define their problem or identify what they are trying to decide. People may also forget to look at all their choices when deciding. Not going through the decision making process, people can make careless and uninformed choices. Once you do make a decision, what kind of attitude should you have regarding that

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