What is the major difference between a command economy and a market economy? The major difference between a command economy and a market economy is who makes the decisions. In a command economy, the government decides what to produce, who to produce for, and how to produce. In a market economy, the people get to decide what to produce, who to produce for, and how to produce. The major difference lies with the control and who is in charge. Which of the characteristics of a market economy do you believe is the most Important? Explain I think that private enterprise is the most important characteristic. Private enterprise is the individual’s right to own a business. The government sets some restrictions but ultimately people are granted freedom in business. Without private enterprise, people in America would not even have the opportunity to own a business or make profit from their business. …show more content…
Private enterprise is very important. Why have market economies been adopted in many countries throughout the world that formerly had command economies? Market economies are being adopted in countries throughout the world that originally had command economies. Market economies make the people happier and more willing to work. In a command economy, the government controlled every aspect. This is negative because the people were not allowed to make any decisions for themselves. Adopting a market economy would completely reverse the ways their economy worked. If you were a citizen in a country that converted from a traditional economy to a market economy, what are some of the changes that you would find in your life compared to life under the former system? Many things would be changed if I was a citizen from a traditional economy that switched to a market economy. Instead of basing what products to produce on customs and traditions, I would now be able to decide what I want to produce. Also, rather than having the product or service just for the immediate people in the area, it could be for everyone. Lastly, I would get to decide how to produce my product and service rather than having it limited to fishing and hunting. Many things would change in a country’s economy and in a citizen’s daily life if it were to switch from traditional to market. What do you think are the positive and negative aspects of the profit motive in a market economy? The profit motive has positive and negative aspects. The profit motive pushes people to become more creative and to work hard. People desire to make the customers happy so they will continue to buy their product or service. The negative aspect, however, would be greed. People in a market economy may get overwhelmed with their desire to get even more money, compromising their quality to do so. Although the profit motive is mainly positive, it has negative aspects too. What are some things that a government can do to help assure that there is fair competition in the market place? The government can ensure that there is fair competition in the market place. Competition is good for the market place. Competition is a rivalry between businesses that gives consumers choices. The government tries to ensure that there is competition. They do this by instilling laws. The government can ensure that there is competition by enforcing laws. 1.2 MAKE DECISIONS Key Terms Needs Wants goods services economic resources Answer all questions in a complete paragraph with an opening sentence, 3 descriptive sentences and 1 closing sentence. Which of the three economic resources do you feel is the most important? Explain. I feel that capital resources are the most important economic resources. Capital resources include the equipment, buildings, and money. Without these resources, a business could not be run. Money, for instance, is needed to start any business. Money is extremely important. If a business is lacking money, then the business will not last. Capital resources are the most important. Without them, a business could not even get started. Which of the six steps in the decision-making process do you think is the most important? Explain The step that I find the most important in the decision making process is defining the problem. Without knowing exactly what your problem is, one may be trying to solve a problem that isn’t even theirs. They could get confused and off task. Defining a problem helps someone to keep focus throughout the rest of the decision making process. Defining the problem is very important. Why are there so many wants in our society? There are many wants in our society today. Many of the wants is accredited to the wonderful things that technology has brought us. Things could include the variety of our foods, technology, or clothing. We have many options today and therefore more wants. So many choices has left people wanting as much as they can get. There are many wants in our society today. What are some of the things that you could do as a business owner to make sure that your employees are the best that they can be? Many things could be done as a business owner to make sure the employees are the best they can be.
Business owners could use incentives and gifts to encourage the workers. For instance, a store owner could initiate the idea that whoever brings ten new customers to the store this week will get a bonus in their pay check. Business owners could give raises, bonuses, and time off as incentives to work as hard as they can. By giving fun extras to the employees, they will feel compelled to do their best. Why do you think people make careless and uninformed decisions? People sometimes make careless and uninformed decisions. Most times, people feel rushed into making decisions without thinking it through completely. I feel the main issue is that they don’t define their problem or identify what they are trying to decide. People may also forget to look at all their choices when deciding. Not going through the decision making process, people can make careless and uninformed choices. Once you do make a decision, what kind of attitude should you have regarding that
decision? Once a person makes a decision, they should have a positive attitude regarding their choice. They should back up their choice entirely and follow up on that decision. If someone is negative toward the choice they made, their decision might fail. They didn’t try as hard to make their choice work so their decision suffered. It is important to have a positive attitude and follow up on the choice that is made. 1.3 HEALTHY ECONOMIES Key Terms Gross Domestic Product (GDP) GDP per capita business cycle Productivity Answer all questions in a complete paragraph with an opening sentence, 3 descriptive sentences and 1 closing sentence. Give a brief description of the three ways to measure the health of an economy. There are three ways to measure the health of an economy. Gross Domestic Product is the total dollar value given to all goods and services. If it increases every year, that is a good sign. Labor productivity is another form of measurement in business. It refers to the number of products produced per worker. Lastly, inflation and deflation are great measurement tools. Inflation is an increase in the prices for goods and services while deflation is a decrease in the prices for goods and services. Controlled inflation is what an economy wants. Gross domestic product, labor productivity, and inflation and deflation are ways to measure the health of an economy. What is the major characteristic of each one of the four business cycle. The major characteristics of the business cycle are the prosperity, recession, depression, and recovery. Prosperity refers to when wages are good and the demand for goods and services is high. Recession is when the demand for goods and services decreases, unemployment begins to increase, and GDP growth begins to slow. Depression is when unemployment is at its highest point, and the demand for goods and services is at its lowest. Lastly, recovery is when unemployment rate begins to decrease, and the demand for goods and services increases. Recovery is also the best time to open a business. Those are the major characteristics of the business cycle. As a business owner, why would the GDP be important to you? The GDP would be important to a business owner. The GDP represents the gross domestic product, which is the total dollar value of all goods and services produced in one year. If the GDP increases each year that is good. Consumer spending will increase and therefore the business will make more money. GDP would be important to a business because it could increase business and consumer spending. Is inflation good for the economy? Explain Inflation is good for the economy. Inflation refers to the general increase of goods and services. If inflation occurs too fast, it is not good for an economy. However, a controlled rate of inflation is the goal. This will allow the prices to increase but not too much as to where it gets out of control. Inflation is very good for the economy. What part of the business cycle do you think we are in today? Explain in terms of all three economic measures. I think that we are in recovery. Recovery is when things are starting to increase again. In this stage, the demand for goods and services begins to increase and the unemployment rate begins to decrease. I think we are in this stage because it wasn’t that long ago that we had that big recession. Also, our country still is in a large amount of debt. I feel that we are still in recovery based on the amount of debt we are in and unemployment rate is still fairly high. 1.4 PARTICIPATE IN AN ECONOMY Key Terms Demand Supply Answer all questions in a complete paragraph with an opening sentence, 3 descriptive sentences and 1 closing sentence. Compare and contrast standard of living and quality of life. As a business owner, which one would be more important? The standard of living refers to the way you live as measured by the kind and quantity of goods and services you can afford. The quality of life is the satisfaction and enjoyment that you get from your life. As a business owner, the standard of living would be more important. This would be more important because it deals with the prices of goods and services that consumers can afford. Business owners need to keep in mind the way people want to live compared to how much they can afford. Why is it important for business and consumers to understand how supply and demand affect the economy? It is important for businesses and consumers to understand how supply and demand affect the economy. If the demand for a good or service increases, the price will tend to go up. As demand goes down, the price will decrease also. In regards to supply, if the product is in short supply, the price will increase. It is in important for business owners to know how this affects the economy so they know how to price their service or goods. It is important for a consumer to know this so that they don’t overpay or underpay.
through the corporate ladder is a great way to motivate employees, overworking might not be the best method, as it can cause burnout and unmotivated employees. Providing low pay and/or incentives to employees is also, in my opinion, not the best way to influence motivational employees who will put forth hard work, and be loyal to the company.
In this essay I will be discussing the features of Scotland’s mixed market economy, describing four aspects of the Scottish economy; Tourism, unemployment, growth and the NHS.
According to Polanyi, a market economy becomes a market society when all land, labour and capital are commodified (Polanyi, 1957). A market society is a structure, which primarily focuses on the production and distribution of commodities and services. This takes place through a free market system, which allows the opportunity for individuals to engage themselves in the market place, through trucking, bartering or exchanging. Polanyi’s fundamental idea of a market society is that all social relations are rooted in the economy as opposed to the economy being submerged in social relations.
In my opinion, making decisions can be categorized into three levels. The first level is making decisions about daily life from choosing what to wear to making a plan for the weekend; making wrong decisions in such level does not have big effects. Making decisions about personal affairs is the second level, such as choosing a partner or a job; people cannot see clearly at this level, and making wrong decisions at the second level can have long-term consequences on their lives. The third level, which is the most difficult, is making critical decisions that determine the destiny of whole nations; at this level, leaders are put between two detrimental decisions and have to choose the least harmful one. Thomas Jefferson
There are many kinds of motivation techniques that one can use when motivating salary and to a lesser extent hourly employees. Factors such as strong communication, added responsibility, achievement, recognition and advancement are all factors that can motivate employees. Due to the union environment it is difficult to motivate hourly employees but what always works well is providing recognition. Sometimes that is done by just thanking employees for doing an outstanding job or giving them gift certificates to a store or restaurant for a job well done. Just spending time with each employee occasionally, keeping in mind the things that go on in their lives and listening to them goes a very long way towards keeping hourly workers motivated. Over the years I have sat down with many employees and listened to their issues at home with their families and sometimes major issues they are having with their children. This time has often led to employees being more dedicated to my objectives as well as the organization's objectives.
During the late 1700’s and well into the 1800’s, American’s lived through expansive growth including economic transformation, politics, labor classification, and increased population were a result of overall growth of the United States. This growth affected how the Americans lived, worked, voted, and were viewed by their fellow citizens. Americans were transforming the lives for financial gains, their own rights, and overall a more content life.
The market today has become so important that society takes it as completely natural. From “The Economic Problem” Heilbroner describes three main solutions, with the market being one. Furthermore into the market, Polanyis book “The great Transformation” gives insight on how much society actually allows the market to dominate. To Polanyi a market society is seen as social relations embedded in the economy instead of the economy being embedded in social relations. Examining both of these books gives a great understanding on how life was without the market and how it came to be. Taking note of Rineharts work as well on how the workplace has drastically been changed by the market is key to analyzing the transformation as a whole. As a result of the transformation, not only has human labour been altered, but another author known as Weber states that certain peoples view on the world have also be affected. This essay will establish how “the great transformation” (Polanyi) from a traditional society to one based on a market economy has vastly impacted societal workplaces, and societal beliefs around faith of idealogical conditions.
"Quotes about Decision Making, Sayings about Choices." The Quote Garden - Quotes, Sayings, Quotations, Verses. Web. 22 Mar. 2011. .
Capitalism has never been dead and will be here for at least the next century. In a world where the market is filled with imperfections, it is in order for the government to interfere to restore order in the market. Increased concerns over the 2008 market collapse prompted the government’s to take charge of their responsibility and act. Capitalism is a system of government that favours individual growth with minimal government interference. The opposite of capitalism is communism, where the property owner is the state, and the main aim is social welfare enhancement. A mixed economy embraces the two and balances between the extremes. Many countries across the globe have adopted a mixed economy as it reduces the losses suffered by the countries that practice the extremes. Capitalism has been known to be responsible for growth of economies among them, the United States, Britain, and other developed countries. In this essay, we shall examine the future and nature of capitalism in the light of a mote communist future.
Capitalism is the result of a process in which economic activities and relationships that carry these mechanisms have been generating increasingly complex operation.
The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.
How would motivating employee’s prompt motivation for the management staff, resulting in a more prosperous business entity?
The best way to motivate workers to give them as much they work so they will do their best and that’s the idea which ford adopted in early 70’s because small companies can grow with their production and the more they produce in one day the cheaper the cost will be because the companies like ford running on a chain process for instance until the tires are not completed it cannot fixed in the car.
In a command economy the government decides what and how the goods should be produced. The economic goal of a command economy is to get complete government control, so that government can regulate and basically run the whole economy to what they want.
Making decisions is really much more complicated than it seems. When I make decisions, my Id, Ego, and Superego decide my fate. Unfortunately for me, my Id wins far too often, as I often do not study enough. Other personality traits, such as my tendency to over-think and analyze too many things, also play a role. This can influence my other behaviors by making me seem cold and distant with others because I’m too busy thinking. My self-concept is also important.