Question

Which of the following issues is a benefit that a country might receive by transitioning from a command to a market economy? A. removing private property from citizens B. increasing the potential for individual income for citizens C. collectivizing citizens’ businesses and land D. adding government regulation of the economy

Answer 1

The answer I would have to go with is... (D. adding government regulation of the economy) I choose this answer mostly because switching from a command to a market would add regulations to the government because command is where one person rules basically. market is a little more freedom.

Answer 2

The correct answer is B) increasing the potential for individual income for citizens.

A benefit that a country might receive by transitioning from a command to a market economy is the increasing the potential for individual income for citizens.

A command economy is when the government has total control of the economy and dictates what to produce when to produce, the number of goods to produce and the prices of the products. In a command economy, there is no competition that helps to produce more articles or in a better way. The consumers only buy what the government produces and workers have no incentives. In a market economy, it is the market, the, and demand that regulates the economy. In this system, there is a lot of companies that compete for clients using advertising, promotions, and marketing. Companies incentive their employees to produce more and sell more. So a benefit that a country might receive by transitioning from a command to a market economy is the increasing the potential for individual income for citizens.