Market Economy Vs. Command Economy

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Market Economy Section 1: Pricing goods and services and economic decisions are guided by individuals and businesses in a market economy. This economic system includes minimal government intervention as well as central planning. A market economy is the basically the opposite of any other economic system, due to the minimum amount of government control. The main forces or characteristics of a market economy is supply and demand. Section 2: The advantages of a market economy include 3 main characteristics: productivity, innovation, and increased efficiency. The disadvantages of a market economy include: the mistreatment of workers, creates unemployment, big firms control the entire market, and also creates a huge gap between the rich and the poor. Section 3: Karl Marx believed in Capitalism. The two classes of capitalism …show more content…

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. Section 2: The advantages of a command economy include: low levels of inequality and unemployment. The disadvantages of a command economy include: lack of competition and keeps prices from resting at an optimal level for the consumers. Section 3: Karl Marx was the founder of communism, and also believed that government should make the economic decisions, so that everyone in society received a fair share of resources. Adam Smith obviously did not believe in the command economy. Adam Smith wanted the opposite of a command economy, which is the free market economy. The free market economy is where individuals in a society make the economic decisions, instead of

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