Homework Sourse1 Indicate whether each of the following decisions is more c
1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy or of a primarily command-oriented economy:
a. a family decides to start a restaurant;
b. a business decides to lay off workers;
c. the government announces a plan for the national economy to focus on producing high technology goods;
d. the government imposes an steep tax increase
1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy or of a primarily command-oriented economy:
a. a family decides to start a restaurant;
b. a business decides to lay off workers;
c. the government announces a plan for the national economy to focus on producing high technology goods;
d. the government imposes an steep tax increase
1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy or of a primarily command-oriented economy:
a. a family decides to start a restaurant;
b. a business decides to lay off workers;
c. the government announces a plan for the national economy to focus on producing high technology goods;
d. the government imposes an steep tax increase
1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy or of a primarily command-oriented economy:
a. a family decides to start a restaurant;
b. a business decides to lay off workers;
c. the government announces a plan for the national economy to focus on producing high technology goods;
d. the government imposes an steep tax increase
Solution
In a market oriented economy most of the economic decisions are made by the market, that is, the buyers and the sellers (firms and individuals). This type of economy is characterized by less government control.
Whereas, in a command oriented economy, the decisions are made by the government. This type of economy is characterized by high government control and less less economic freedom.
