Which situation is more likely to occur in a market economy than a command economy?
A:People line up for cheap but scarce products.
B:A student is guaranteed a job out of college.
C:An inventor designs and produces a new type of car.
D:A committee chooses which farms should receive new tractors.
C: An inventor designs and produces a new type of car.
In a market economy, where individuals and private businesses make decisions based on supply and demand, innovation and entrepreneurship are encouraged. Individuals are free to design and produce new products based on their own ideas and market demand. In contrast, in a command economy, where the government controls the allocation of resources and production, decisions regarding inventions and new products are typically made by a central planning authority or committee (option D).