9. Who provides answers to the fundamental economic questions in a command economy? Why?

The command economy is a society where the government institutions make all decisions concerning what will be produced, how it will be produced, and for whom it will be produced.

In a command economy, a central authority or agency draws up plans that establish what will be produced and when, sets production goals, and makes rules for distribution.

The government owns a considerable fraction of the means of production that is, they are publicly owned; it also owns and directs the operations of enterprises in most industries; it is the employer of most workers and tells them how to perform their work.

10. What is a market economy?

The market economy (or so called free market economy or free enterprise economy) is an economic system in which the decisions of many individual buyers and sellers interact to determine the answers to the questions of What, How and Who. In a market economy the fundamental economic questions are answered in the marketplace by the interaction of buyers and sellers.

11. Who owns the means of production in a society with a market economy?

One of these is private property - the right of individuals and businesses to own the means of production. In a free market economy, the major factors of production are privately owned.

12. What are the essential elements of a market economy?

There are several essential elements in a market economy. One of these is private property - the right of individuals and businesses to own the means of production. In a free market economy, the major factors of production are privately owned. This desire to earn profits or the profit motive is a second ingredient in a market economy. The profit motive encourages sellers to produce at the lowest possible cost.

13. What is private property?

private property - the right of individuals and businesses to own the means of production. In a free market economy, the major factors of production are privately owned. Private ownership gives people the incentive to use their property to produce things they will sell and make profits.

14. What is the profit motive?

the profit motive is a second ingredient in a market economy. The profit motive encourages sellers to produce at the lowest possible cost. It is a desire to benefit from the investment of time and money in a business enterprise.

15. What is a mixed economy?

The mixed economy is an economic system that answers the three economic questions both in the marketplace and in the government*.

A mixed economy contains both private and public, or state-owned (or controlled) enterprises and relies on the market but with a large dose of government intervention.

16. What features does a mixed economy combine?

A mixed economy contains both private and public, or state-owned (or controlled) enterprises and relies on the market but with a large dose of government intervention. Since no country in the world exemplifies either type of economic system in its pure form. The blend of market and government participation is different in different countries with mixed economies.

Demand