Question

Complete one sentence EACH about the market system, command system, and circular flow.

Answer 1

      Market system is a type of economy where the demand and supply of a good are determined by the consumers and producers, and government has very small role to play.

      Command system is a economy where most of the decision of the market is determined by the government that is how much to sell and produce, what should be the price of the product etc.

     Circular flow is a neo classical theory which describes how money flow into an economy, the modeling consists of only household and firms.