Using complete sentences, explain the differences between a command economy and a market economy. what type of
economic system is created when these two systems are combined? what are the benefits of combining these two systems

Market economy:

- Based on a free-market;

- private property and private companies dominate the economy;

- the means of production are in the hands of the private businessmen or entrepreneurs;

- companies operate for profit;

- prices, resource allocation, products and product distribution are decided by the market .

Command economy:

- Based on the predominant state property;

- no private entrepreneurship or minimally allowed;

- the means of production are in the hands of the state;

- there is a centralized system of decision-making;

- decisions on prices, allocation of resources and product distribution are not made by the market but by the state.

Combining both systems? Not a good idea. The socialist command economy is uncapable of creating and multiplying wealth in a sustained manner in the long run. It leads to economic stagnation and technological backwardness. Examples? Look at the Soviet Union.

Explanation:

The market economy is an economy type where the private businesses dominate. The economy is open, the trade is on a large scale, and very often big percentage of the produced goods are exported, while others are imported.

The command economy is in the hands of the government, which controls everything in it, and has all the resources in its hands. The economy is usually more closed, and there's trade with only a handful of countries, usually with the same economic type. The private businesses do not exist.

By combining this too we get mixed economy. In this type of economy, the government still has big portion of the resources in its hands, and is still heavily involved in the decisions, but the economy is much more open for trade. The amount of production is much bigger than what the country needs, so there's lot of goods that are exported. The benefit is that the government has control over the most important things in the country, and the workers are protected, as well as making big profit from the export of goods while maintaining the balance on home ground. A perfect example of this is China.