What is the difference between market economy and planned economy?

Answer by  sonorasun (174)

A market economy is generate through buying and selling, prices determined by demand and a planned economy is where a government determines pricing for goods and services.

Answer by  spottygao (42)

In a planned economy government makes all decisions about the use of a country's resources. The opposite, a free market economy, has theoretically zero government involvment, and production and allocation decisions are made through interactions between buyers and sellers. A mixed economy is a hybrid of the two.

Answer by  Hypotypo (41)

market economy is where the supply market is freely engaged to meet the demand, these condition also apply to money market and domestic currencies, thus resulted price fluctuation. Whereas planned economy is more likely to be controlled by government, these include controlled supply,demand, money market and domestic currency value

Answer by  Bardzot (64)

In a market economy, the prices of goods and services vary according to supply and demand. In a planned economy, a central body controls supply and prices.

Answer by  Anonymous

Me la pela juan