I don't understand this at all. I'm going to find some help! Maybe some local businessmen and businesswomen will know?
Sure! Basically what a command economy is when the government controls everything like how businesses operate and what they sell, which is what leads into freedom of choice. Since we live in a capitalist economy, that means we get to choose what to buy and sell. An example of command economy would be a communist country, and an example of freedom of choice is getting to pick what clothes you want to wear.
Could you explain to me what a command economy is and the principle of capitalism known as freedom of choice?
Of course! A market economy is when the people have control over the resources of the country, and get to control their businesses. Competition also relates to that, and propels the economy by giving customers a choice in what they want to buy and producing better quality. An example of a market economy would be capitalist America, and an example of competition would be like two milk brands developing and improving to attract more customers.
Do you think you could tell me what a market economy is and explain competition to me?
Lia is confused about the lesson she just had in her business class, so she plans to go visit some local businesses and ask their owners about it due to their experience.
The first place she goes is to the clothing store and asks the manager about command economy and the freedom of choice.
Next, Lia goes to the grocery store to ask the manager about market economy and competition.