Questions: Comparing Free Market and Command Economies Think back to what you've learned about free market and command economies and identify the features with the economic system they best align with. market-controlled prices Free Market Command supply and demand government-controlled prices long-term economic planning publicly owned property privately owned property

To compare free market and command economies, we need to identify the features that best align with each economic system. Here is a breakdown of the features and their corresponding economic systems:

1. Market-controlled prices:

   • Free Market: In a free market economy, prices are determined by the forces of supply and demand without government intervention. This allows for flexibility and responsiveness to consumer needs and preferences.

2. Supply and demand:

   • Free Market: The principle of supply and demand is fundamental to a free market economy. It dictates how goods and services are produced, distributed, and priced based on consumer demand and the availability of resources.

3. Government-controlled prices:

   • Command Economy: In a command economy, the government sets prices for goods and services. This is done to control inflation, ensure affordability, and achieve other economic goals set by the state.

4. Long-term economic planning:

   • Command Economy: Command economies often involve extensive long-term planning by the government. This planning includes setting production targets, allocating resources, and determining the distribution of goods and services to meet national objectives.

5. Publicly owned property:

   • Command Economy: In a command economy, the government typically owns and controls major industries and resources. This public ownership is intended to ensure that the benefits of economic activity are distributed more equally among the population.

6. Privately owned property:

   • Free Market: In a free market economy, property and businesses are privately owned. Individuals and companies have the right to own, use, and transfer property as they see fit, which encourages entrepreneurship and investment.

To summarize:

• Free Market: Market-controlled prices, supply and demand, privately owned property.
• Command Economy: Government-controlled prices, long-term economic planning, publicly owned property.

These distinctions highlight the fundamental differences between free market and command economies in terms of how they manage resources, set prices, and plan for the future.