What is a direct contrast to a market economy?
Understand the Problem
The question is asking for an economic system that operates in opposition to a market economy, which typically relies on supply and demand to allocate resources. The answer should identify and describe a contrasting economic system.
Answer
Command economy
The final answer is a command economy.
Answer for screen readers
The final answer is a command economy.
More Information
In a command economy, the government controls the factors of production and makes all economic decisions, unlike a market economy where business decisions are driven by supply, demand, and profit motives.
Sources
- What's the difference between market economy and command economy? - Investopedia - investopedia.com
- Market Economies - National Geographic Education - education.nationalgeographic.org
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