How is a market economy different from a centrally planned economy? Give any two sentences.
- In a market economy, self-interest is the prime consideration. However, the social welfare or collective welfare is the prime consideration behind allocation of resources to the production of different goods and services in a centrally planned economy.
- There is a profit motive behind every economic activity in a market economy, whereas social interest is behind every economic activity in a centrally planned economy.
You have rated this answer /10