How do market economy and command economy differ?

Set by supply and demand, a market economy operates through a price system; in a command economy, governments control the resources and ... and in what quantity; the prices in a market economy act as signals to producers and consumers who use these price signals to help make decisions. read more

Market economies and command economies occupy two polar extremes in the organization of economic activity. The primary differences lie in the division of labor or factors of production and the mechanisms that determine prices. read more

In a command economy, citizens have fewer property rights. In a mixed market economy, citizens have more property rights. read more

Resources are allocated based on need instead of efficiency. In a market economy, there is no government intervention, and it operates on the assumption that efficiency will be achieved through rational self-interest. Command economies and market economies are the same in that both fail in the real world. read more