Economics of Command and Free Markets

In a Free Market Economy, who decides what to produce?

• The government

• Consumers

• Companies

• Foreign investors

What role do consumers play in a Free Market Economy?

• They set the prices.

• They choose what to buy.

• They produce goods.

• They control the factories.

How does competition affect a Free Market Economy?

• It reduces the quality of goods.

• It increases prices.

• It is the struggle between producers for consumer money.

• It eliminates consumer choice.

What drives the production of goods in a Free Market Economy?

• Government regulations

• Supply and demand

• International trade

• Environmental policies

What is the main decision-making factor for companies in a Free Market Economy?

• Government policies

• Consumer preferences

• International laws

• Environmental concerns

What is a potential outcome of competition in a Free Market Economy?

• Higher prices

• Less consumer choice

• Improved product quality

• Government control

In a command economy, who controls the products offered and the price of goods and services?

• The government

• The consumers

• The store owners

• The international market

What is not allowed in a command economy regarding prices?

• Government setting prices

• Store owners deciding prices

• Fixed supply of goods

• Meeting basic consumer needs

What might be a challenge for people living in a command economy?

• Having too many choices

• Not having enough to satisfy their needs

• Prices changing too frequently

• Too much competition among businesses

What is a characteristic of markets in a command economy?

• Prices fluctuate based on demand

• Prices are stable and set by the government

• Store owners have complete control over prices

• Consumers can negotiate prices