Using complete sentences, explain the differences between a command economy and a market economy. What type of economic system is created when these two systems are combined? What are the benefits of combining these two systems?

Answer:

Responses may vary but should include some or all of the following information: A command economy and a market economy are completely opposite economic systems. In a command market, the government controls everything. The government determines which goods and services they want the nation to produce. The government owns all capital used, including land, materials, machinery, and technology, and it decides who can use the goods and services produced. A command economy can provide economic equality and security to those who use it. A market economy is completely different. The goods and services produced in a market economy are determined by the consumers. All businesses belong to the private sector, which means that individuals own the business and capital. The goods and services produced are used by those who can afford them. Market economies are used because they can profit producers greatly and because competition creates progress. When these two types of economies are combined, a mixed economy is created. It has some privately owned businesses and some government businesses and regulations. Most modern economies are mixed economies to some degree. The benefits of using mixed economies include competition that ignites progress and government regulations that protect workers and try to provide some economic equality.