Thursday, July 19, 2012

U.S. Business System & Environment | Planned Economy & Market Economy


How does a planned economy differ from a market economy?

























Answer:  A planned economy relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. In a market economy, individuals control production and allocation decisions through supply and demand.

Source: Business Essentials, 8e (Ebert/Griffin) – Global Edition

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