Will give out brainliest and maximum points to ! ! you may write a poem that explains the difference between a market economy and a command economy. your poem must include: -six terms from chapter 2* -at least one of the primary goals of each of the economic systems -highlights of at least two benefits and two drawbacks of each economic system. *key terms listed in attachment
Innovation is encouraged because it provides a competitive edge and increases the chance for wealth.
A large variety of goods and services are available as businesses try to differentiate themselves in the market.
Economic activity is encouraged because you need money to live and need to engage in economic activity (through employment or self-employment) to make money.
disadvantages: Environmental damage results with no government regulations because it's usually more expensive to produce in an environmentally sound manner, which reduces profits.
There tends to be a reduced social safety net, including such programs as unemployment insurance, Social Security, and Medicare, because these programs are supported through taxation.
command economy is one in which a centralized government controls the means of production. The government determines what is produced, how it is produced and how it is distributed. Private enterprise does not exist in a command economy. The government employs all workers and unilaterally determines their wages and job duties. There are advantages and disadvantages of command economy structures. Command economy advantages include low levels of inequality and unemployment and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.
A market economy is based off of privately owned organizations and companies that produce products (by means of voluntary exchanges and contracts) and services that make up the economy, while command economies production factors owned and run by the government (such as capital, land, and resources) Most governments are a blend of the two .
A. A market economy is determined by consumers and a command economy is determined by central authority.
A market economy is driven by customers in the form of demand and the sellers in market supply to satisfy the demand.
Command economy is driven by command, customers do not decide what to demand and when, only central authority supplies what they see fit.
Answer and Explanation
In market economy is system is where goods and services are freely exchanged in an open market. The features in this market are that producers and consumers are multivated by the profit they get because they are engaged to each other directly. They are also free to produce, purchase and sell goods and services. Since the all the resources are owned by producers and consumers, they determine form of supply and the demand of outputs and the government does not intervene in the market except to ensure that the market remains free.
While in a Command Economy System this the type of economy system where the government controls everything in the market .Here the governments controls the production of goods and services and also decides which goods and services to produce. Unlike in the market economy in command economy decisions are made by the government because it owns many resources and prices do not adjust based on the supply and demand. SO salaries and employment rates and goods prices are determined by a centralized body.
it is the Market economies and command economies occupy two polar extremes in the organization of economic activity The activity in a market economy is unplanned; it is not organized by any central authority but is determined by the supply and demand of goods and services.
it would be a
Market economies and command economies (planned) occupy two polar extremes in the organization of economic activity. The primary differences lie in the division of labor, or factors of production, and the mechanisms that determine prices. China, North Korea, and the former Soviet Union are all examples of command economies.
Market economies utilize private ownership of the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. In reality, all economies blend aspects of the two.
Market Economy:No government intervenes in decisions related to economies. private ownership decide for all production. Consumers himself decide what should be produced in the economy and he can do this by purchase he made.In Market economy prices determined by market forces.
Mixed Economy:Most of the world economies preferred a Mixed economy. It is a mixture of a command and a market economy.The mixed economy is regulated by Government regulations.
The command economy is controlled by a central force like the government. Market economies are controlled by market forces