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Who answers the three economic questions in a market economy? How is this different from a command economy?
Do you know the 3 economic questions?
Ok just to lay them out for future people and just in case you don't actually know they are What, How, and Whom
For (What) it is the consumers who have the power and choose what is produced. For (How) it is generally the big boys. So firms. They decide how they will be produced. For (Whom) it is fairly straight forward. Us the consumer
This is all in a free market economy of course, In a command economy things are much different. It is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale. So basically all communist countries such as China and Russia. Make sense?
(for future reference) I would recommend you post this in the Economics section of Openstudy.
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