Question 34 (5 points)
which type of economy does each statement describe?
match each item in column a to the answer in column b
capitalist economy
1. producers choose what to produce.
command economy
2. the government owns most property.
command economy
the goal is economic equality.
4. consumers' choices affect producers.
capitalist economy

1. Producers choose what to produce - capitalist economy

2. The government owns most property - command economy

3. The goal is economic equality - command economy

4. Consumers' choice affect producers - capitalist economy

Explanation:

The capitalist and the command economies are totally different. In a capitalist economy most of the business is run and owned by private owners, while the government has only a minor role in it. The producers have the right to produce what they want, how much they want, and which way they want. The consumers are the ones that dictate the market, as they are the ones that choose from the numerous products, so the producers have to adapt to what is demanded. In the command economy the government owns pretty much everything. The business sector is run by the government, and the people in the country are all working for the government run businesses and are all equal. What is produced, how much is produced, and with what quality is set by the planners of the government, so the consumers have only limited amount of products, thus they can not really choose.