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Market and command system

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Evaluate the following statement and give your explanation:

The market system is a profit-and-loss system.

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This solution evaluates the statement, "the market system is a profit-and-loss system".

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The market system is also called the capitalist system. It is "characterized by the private ownership of resources and the use of markets and prices to coordinate and direct economic activity" (McConnell & Brue, 2008, p. 29). In the market system, individuals achieve their economic goals through the decisions they make regarding work, consumption or production. Unlike command system which is centrally controlled by the government, the market system "allows for the ...

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Edwin Sinclar, MBA
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  • MBA, Aspen University
  • Bachelor of Science , Berea College
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