The essential difference between a command economy and a market economy is that in a market economy
a
the prices of products and resources are largely determined by government regulation of businesses.
b
buyers and sellers determine resource allocation.
c
central planning creates an effective incentive system for consumers and producers.
d
shortages occur more often than surpluses.
b buyers and sellers determine resource allocation.
Explanation:
The market is regulated by the interaction between Sellers and Buyers. However, in a Command economy the market is regulated by the government policies.
