Which of the following best explains the difference between a market economy and a planned economy?
A) In a planned economy, consumers have little choice in where people work or what they purchase or pay. In a market economy, there is more choice in where people work or what they purchase or pay.
B) In a market economy, consumers must pay what the market demands.
C) Capitalism is the root of a planned economy.
D) Market economies are also known as mixed market economies.
E) Planned economies promote the use of privatization to increase market share.

Question

Quizplus · Accepted Answer

In a planned economy, the government or a central authority dictates what goods and services should be produced and how resources should be allocated, leaving consumers with limited choice. In a market economy, consumers have more freedom and choice in their purchases and employment.

Which of the Following Best Explains the Difference Between a Market