How do command economies compare to market economies?
A.
Command economies encourage entrepreneurship more than market economies.
B.
Command economies regulate businesses more strictly than market economies.
C.
Command economies provide consumers with more choices than market economies.
D.
Command economies provide greater private property protections than market economies.
B.
Command economies regulate businesses more strictly than market economies.
B. Command economies regulate businesses more strictly than market economies.
To compare command economies to market economies, we need to understand the key differences between the two systems.
A command economy, also known as a planned economy, is a system where the government or a central authority makes decisions about production, distribution, and resource allocation. In this system, the government determines what goods and services are produced, how they are produced, and who receives them.
On the other hand, a market economy, also known as a free-market economy, is a system where economic decisions are primarily made by individuals and businesses. In this system, supply and demand forces determine what goods and services are produced, how they are produced, and who receives them.
Based on these definitions, let's analyze the options:
A. Command economies do not typically encourage entrepreneurship as much as market economies. In command economies, the government plays a central role in economic decision-making, limiting the ability of individuals to start new businesses and pursue entrepreneurial endeavors. Market economies, on the other hand, foster entrepreneurship by allowing individuals to freely engage in economic activities.
B. Command economies do regulate businesses more strictly than market economies. In command economies, the government has a high level of control over businesses, often setting strict regulations and guidelines for their operations. Market economies, while still having some regulations in place, generally allow businesses more freedom to operate under less direct government intervention.
C. Command economies do not provide consumers with more choices than market economies. In command economies, the government controls what goods and services are produced, resulting in limited choices for consumers. In contrast, market economies offer a wider range of options as supply and demand determine the variety of goods and services available.
D. Command economies do not provide greater private property protections than market economies. In command economies, the government often owns and controls significant portions of the economy, including property and resources. This limited private property ownership rights may lead to reduced protections compared to market economies, where private property rights are typically highly valued.
Therefore, the correct answer is B. Command economies regulate businesses more strictly than market economies.