Free Market Economy Vs Command Economy

Words: 984

Pages: 4

Open Document

A command market and free market economy would fall under the several different types of governments. A command market economy is an economic system in which the state or government controls the factors of production, such as what goods should produced, how much should be produced and the price of which these products will be sold for (Nove,1987). Whereas a free market economy would be a system where the production and distribution of goods and services are determined by individuals, the characteristics of this system would be that self-interest is the motivating force of the economy.(Johnson,2005). These systems are work in contrast with each other, while both harbor many bad qualities they do also possess benefits that to the economy. This essay will aim to discuss the advantages and disadvantages of both the free market …show more content…
Unlike the command economy system, the free market economy does not focus on the basic necessities of the public. Furthermore, the senior citizens would be unable to assist themselves due to old age without the help from the government. The primary objective of any firm is to make profit. However, in many cases, companies may risk the workers safety, and ethical behaviors to achieve this. For example, the Deepwater Horizon oil spill in 2010, on of the largest environmental disasters in the US was largely attributable to the use of substandard cement and other cost-cutting measures (Eley,2011). In a free market economy, no one provides education, public services, or healthcare. Therefore, that would lead to the rich becoming richer and the poor becoming poorer. To sum it up, there will be a waste of resources, as well as, social injustice and economic instability. Monopolies will also become a common recurrence due to the lack of regulations and government

Capitalism vs Marxism Essay example

Capitalism vs Marxism An essay on which economy is the better choice. By Kiros Johnson 1 An economy, as defined by dictionary.com, is the management of resources of a country with a view to its productivity. There are multiple economies in this world, all of which think they are better than the other. It’s almost as if the economies are political parties fighting over a piece of land. However, economies vary among all. The writer will…

Words 846 - Pages 4

Economics: Economics and Opportunity Cost Essay

Modern Economy • Economy: a system in which scares resources are allocated among competing uses. Economies tend to be complex systems and scares resources include land, labour and machines (capital). The Self-‐Organizing Economy (Invisible Hand) • “The great insight of economists is that an economy based…

Words 1560 - Pages 7

Questions On Economics

LECTURE 1 (CHAPTERS 1 AND 2) Economy comes from a Greek word “one who manages”: both face many decisions Society’s resources are scarce ( we have limited resources and cannot produce ALL the goods/services people wish to have) “Economics is the social science connected with EFFICIENT use of SCARCE resources to achieve MAXIMUM satisfaction of economic wants” 10 KEY ECONOMIC PRINCIPLES 1. People face tradeoffs (to get one thing, we have to give up another) We give up efficiency to get equity sometimes…

Words 1943 - Pages 8

Economics and Substitute Goods Price Essay

determined by family tradition. Command Government determines how to use and distribute resources. What should be produced At what price For what wages Communism and socialism: examples of command systems. Each person’s job could be determined by the state. Market Economic decisions are made by individuals, who determine how resources are allocated and goods are distributed. A person’s job is determined by his/her choice. Mixed A combination of Market and Command systems, where government…

Words 2509 - Pages 11

Essay about Hsc Course Summary Topic 1

James Banks – Economics Summary Summaries Topic 1 – The Global Economy Students Learn About: International economic integration • The global economy o Situation where the economies of individual countries are increasingly linked to each other and changes in a single economy can have ripple effects on each other. • Gross World Product o Aggregate value of goods and services produced per annum worldwide (PPP) o Approximately $70 trillion US PPP…

Words 2003 - Pages 9

ch01 2 Essay

for the forecasts on the availability of jobs in health care, and how reliable are the forecasts? In this book, we use economics to also answer these questions: • How are the prices of goods and services determined? • How does pollution affect the economy, and how should government policy deal with these effects? • Why do firms engage in international trade, and how do government policies affect international trade? • Why does government control the prices of some goods and services, and what are the…

Words 2762 - Pages 12

International Business Essay

Chapter 1: Globalization • Globalization – Trend away from distinct national economic units and toward one huge global market. o Globalization of Markets – Moving away from an economic system in which national markets distinct entities, isolated by trade barriers and barriers of distance, time, and culture and toward a system in which national markets are merging into one global market. o Globalization of Production – Trend of individual firms to disperse parts of their productive processes to different…

Words 2800 - Pages 12

Essay about China USA

and why? (If you want to you may specify the type of business.) The course code and course title: POLI3001 Organizations, Politics and Society My tutorial day and time: Thursday 12:00-13:00 My tutorial name: Gazi Hossain Due day: 23 August As economy expansion in recent decades, China becomes a severe threaten to other countries, especially to USA which is the most powerful country in the post-cold war world (Zhao, 2007). China and USA base on opposite political regimes: China is a socialist country…

Words 1749 - Pages 7

Notes for all Semester Essay

Conference on Trade and Development Based on three things Revenue (Home Country vs. Host Country) Assets Employees Globalization: is the interconnection of countries , shrinking the world, link between international trade, politics, and culture. Technology improvement McDonaldization Price Culture Business Model Customer Demand Lower Price Higher quality Individuals, Companies, Countries More markets, trade routes, products, expansion. Economic Indicators Broad Global Issues Environmental…

Words 1896 - Pages 8

The World Is Exceedingly Interconnected

dictates how things will be Democracy and Totalitarianism In most totalitarian regimes there is widespread political repression there are no free and fair elections media is censored basic civil liberties are denied challenges to the regime are prohibited Usually totalitarian regimes are characterized by widespread political repression, a lack of free and fair elections, censored media, and a lack of basic civil liberties. It’s also hard to challenge this type of regime. You may recall hearing…

Words 4717 - Pages 19