What is the difference between how running shoes are produced in a market economy and in a command economy?


The major difference here is in who decides how the shoes will be made and how many of them will be made.  In a command economy, the government would determine how many shoes would be needed in a given year.  They would also determine exactly how the shoes would be made (what style, what machinery would be used to make them, etc.).  By contrast, these decisions are made by consumers in a market economy.  The companies will make as many running shoes as people are willing to buy.  They will make them in the colors and styles that people want to buy.  In the one kind of economy, the government makes the decision whereas the people make the decisions in the other kind of economy.

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