Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Discussion Questions: 1

Answer

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Work Step by Step

Command systems and laissez faire systems are opposites. In a command system, there is a central governing body (generally the government of the country) that controls the economy. Contrarily, in a laissez faire system, there is supposed to be an "invisible hand"--self interest--that guides the economy. Most economies are a mix of these two things.
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