Explain the differences between a market system, a command ...

[kamilo84]

Explain the differences between a market system, a command economy, and a mixed economy with respect to production and distribution decisions.
 
  What will be an ideal response?

Question 2

The maximum amount Jameson would be willing to pay for a cupcake, less the price he actually pays, is called
 
  A) consumer surplus.
  B) producer surplus.
  C) cooperative surplus.
  D) deadweight loss.

[ms_sulzle]

Answer to Question 1

In a market system, sellers primarily make production and distribution decisions, but they must satisfy the tastes of buyers. In a command economy, the government makes production and distribution decisions. In a mixed economy, buyers and sellers make some production and distribution decisions and the government makes others.

Answer to Question 2

A