Command Economy – communism
The government makes all the decisions
 what goods are produced
 how the goods are produced
 the prices for the goods
 what people receive training for specific jobs and people’s wages
The government owns the resources – there is no private ownership by
citizens.
The focus of production is on heavy industrial goods usually for the military.
There is little emphasis on consumer goods (clothing & household products).
Free Market economy – Free enterprise – democratic society
Individual citizens make the decisions
 what goods are produced
 how the goods are produced
 the prices for the goods
 what jobs they wish to be trained for
Individuals can choose to own property.
There is more of a focus to produce goods the consumer wants.
Supply and demand determines prices of goods and wages workers earn