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What is the difference between a market economy and a planned economy?A centrally planned economy is the one in which economic activities (production, consumption and exchange) are governed by the government. Market economy is the one in which economic activities (production, consumption and exchange) are governed by the market forces of supply and demand.
Which of the following best summarizes a basic difference between market economies in centrally planned economy?Which of the following best summarizes a basic difference between market economies and centrally- planned economies? Self-interest and prices serve to allocate resources in a market economy while a central planner typically attempts to allocate resources in a centrally-planned economy.
What are planned and market economic systems?In a centrally planned economy, major economic decisions are made by a central authority such as the government. Centrally planned economies are different from market economies where large numbers of individual consumers and profit-seeking private firms operate most or all of the economy.
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Which of the following best explains the difference between a market economy in a planned economy quizlet?
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