In a market oriented economy most of the economic decisions are
made by the market, that is, the buyers and the sellers (firms and
individuals). This type of economy is characterized by less
government control.
Whereas, in a command oriented economy, the decisions are made
by the government. This type of economy is characterized by high
government control and less less economic freedom.
- A family decides to start a restaurant - here the government
control is less and the economic decisions is upto the individuals
centered around the restaurant. So, this exhibits the
characteristics of market-oriented economy.
- The business decides to lay off workers - the decision to lay
off workers is Upton the business, so this also exhibits the
characteristics is market oriented economy.
- The government announces a plan for the national economy to
focus on producing high technology goods - here, the government is
vocal about the economic decisions and therefore this is an example
of command oriented economy.
- The government imposes an steep tax increase - in this economy,
the government intervention is high so it is a command
oriented economy.