On the economic spectrum, the opposite of a command economy is often described as a laissez-faire economy. Which option list reflects that description?

• A. Command economy
• B. Market economy
• C. Laissez-faire economy
• D. Mixed economy

Answer: (C)

On the economic spectrum, the opposite of a command economy is a laissez-faire economy, which embodies a hands-off approach where the government intervenes minimally and market forces allocate resources. In a laissez-faire system, private property, voluntary exchange, and competition drive decisions about what to produce, how to produce, and at what prices. The government’s role is mainly to enforce laws and protect rights, not to plan or direct economic activity. This directly contrasts with a command economy, where central authorities make the major economic decisions. While a market economy shares the idea of limited intervention, the term that most precisely captures the described opposite is laissez-faire, which explicitly signals minimal government involvement.