Question

What is the concept of the capitalist market system or price system?

What is the concept of the central planning system or command system?

Answer 1

1)the capitalist market system is just like any other market system which operates according to demand and the supply sitiation but guidede by profit motive. the capitalist always aims to accumulate more profit by accumulating capital in the economy.In a capitalistic economy, the production and pricing of goods and services are determined by the free market, or supply and demand situations. how ever the capitalist economy can lead to monopolisation of resources and consumer exploitation to some extent.

2) central planning system is a system where government is the king. it takes all the decissions regarding what to produce, how, to produce, how much to produce and so on. the sole propiater is government here. features of a centrally planning system are as follows- ownership by government, economic decissions taken by government, prices are usually set by government rather than market forces, lack of freedom for private entities, scope for curreption and so on.