Free Market v Command Economies Flashcards
1
Q
The interaction of demand and supply determines what shall be produced in what quantity
A
Free market
2
Q
Distribution of goods is decided by consumers. people spend their money to buy what they want
A
Free Market
3
Q
Prices are officially determined, through equilibrium between supply and demand
A
Free market
4
Q
Is central authority, determines how much of every good will be produced
A
Command
5
Q
The central authority determines either directly or indirectly, what goods will be available and to whom
A
Command
6
Q
Prices are fixed by the central authority. This control frequently results and surplus is an shortages of goods.
A
Command
