Market Economy Vs Command Economy Essays

Mixed Economy Vs. Command Economy Essay

An economic system defines how the various entities in an economy interact. People have defined an economic system variously to include government policies, which is very important especially in modern times. Ancient systems were pretty simple. Trade was done using systems like barter trade which was very straight forward. People only exchanged what they had for what they needed, or wanted. However, in modern monetary economies, the setting is quite intricate. Huge established companies have a lot of influence in the way business is done. Treaties and agreements are made every day, and governments have made numerous laws to define trade, thus warranting the need for a more comprehensive definition of what an economic system is. An economic system can now be described as an organized manner in which a particular government chooses to allocate goods and services in the country. Modern economic systems are about more than just trade. They define the values of a society, or a country, as well as the political structure of that society.
Two ways an economy can be organized are as a mixed economy or a command economy. A mixed economy is an economic system that incorporates the characteristics of several different economic systems. This usually means an economy that contains both private-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market economy and command economy characteristics. There is not one single definition for a mixed economy. However, a command economy, or centrally planned economy, is where the government controls the economy and owns both land and capital.
There are three basic questions in economics. One is, which goods are to be produced? The other one is: how are the goods going to be produced. The third question is: who is going to consume those goods and services that have been produced. Effectively, the structure of an economic system seeks to answer these questions. The system sets the rules of play for all participants in an economy, and defines how they are going to interact with each other.
A mixed economy combines elements of free-market and command economies. Both market forces and government decisions determine which goods and services are produced and how they are distributed. These moves are made for a variety of...

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Conflict With Mining Enterprises in Northern Wisonsin: Environment vs. Economy

1769 words - 7 pages Imagine having a backyard where one had prime cross country skiing slopes, trickling streams and waterfalls, natural caves to go swimming and spelunking in, wetlands to go wild-ricing, fly fishing for trout, and mountains and valleys to take 5-day canoe portages and hiking adventures throughout, all near one’s own house. With the cool breeze and the abundant snowfall the often accumulates up near the Upper Peninsula, due to the lake effects of...

"Hybrid vs. Conventional Vehicles" It goes over the pros and cons of both conventional and Hybrid vehicles, as well as their effect on the economy.

1091 words - 4 pages There have been, and still continue to be, many advancements in the automobile industry. In the beginning of automobile technology, around the 1880's, automobiles actually started out as electric powered. Because of the inefficiency of the electric vehicle technology of that time gasoline powered vehicles became more widely used. At the beginning, this new invention of a "horseless carriage" was thought of as a fluke. During this time it was...

Do You Agree With The Contention That The Mixed Ec

832 words - 3 pages Yes, I agree with the contention that the mixed economy is the best among all the economy systems. The mixed economy has been defined as an economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems. Not a single nation in this world practices a pure traditional, command, or market economy. They may concentrate on one of the economic policies but they can?t avoid from adding...

Do You Agree With The Contention That The Mixed Ec

832 words - 3 pages Yes, I agree with the contention that the mixed economy is the best among all the economy systems. The mixed economy has been defined as an economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems. Not a single nation in this world practices a pure traditional, command, or market economy. They may concentrate on one of the economic policies but they can't avoid from adding...

Economies in Transition: Poland.

562 words - 2 pages A command economy is an economy, which is planned by the government. The command economy is under the control of the governing party. The production and distribution of goods and services is totally all managed by the government. The distribution may use the rationing system or people will have to queue. The command economy...

The Differences between Command Economies and Free Market Economies

728 words - 3 pages The Differences between Command Economies and Free Market Economies The prime difference between command economies and free market economies is the method used to answer the three central questions of what, for whom, and how? Each of these questions relates to production. In a free market economy, the answers to these questions are decided by the consumer and overseen by a government that practices a laissez-faire...

Compare And Contrast Two Alternative Systems Of Resource Allocation In The Economy

1783 words - 7 pages Compare And Contrast Two Alternative Systems Of Resource Allocation In The Economy Economics can be said to be the science which studies the relationship between scarce resources, with alternative uses, and consumers’ unlimited wants. Therefore the ‘problem’ of resource allocation can be seen to be central to the basic economic problem. In this way , how resources are allocated throughout an economy is of great importance and different types...

economics

3045 words - 12 pages QUESTIONHow does different economics system contribute towards the welfare and wealth of a country? Describe one economic system of a particular country and compare it with another economic system of another country.EXECUTIVE SUMMARYEconomics is one of the oldest disciplines among the humanities and it is categorized as a social science. Economics analyses the economic activity of people...

The Japaneese economy

692 words - 3 pages The prewar economy of Japan was a Socialist economy and the country was ruled by an emperor up to WW2 and after WW2 it started to lean towards a mixed market economy until what it is today although its government is Socialist it is leaning towards a mixed market economy.The Japanese economy is a mixed economy that leans towards market, it is like this...

Question: 'A free market system is the best way to organize the economy.' Do you agree with the statement? Explain your answer.

879 words - 4 pages Theoretically, a free market is a market where price is dependent on the mutual agreement between buyers and sellers without intervention in the form of taxes, subsidies or regulation from the government. A free market system allows producers to set their own prices and consumers to have the freedom of choice. However, there is also an unequal distribution of wealth and a high risk of monopoly by a single firm in a free market system. Faced...

Communism/lenin/stalin

531 words - 2 pages 4a. Lenin adapted Marxism to conditions in Russia because the country was in a state that wouldn't have been ideal for Marx's concepts. Marx had predicted that the unhappy working class would overthrow the capitalist government, as they were the getting shorthanded. However, this wasn't the case in Russia, as Russia lacked a large urban proletariat. So Lenin set up his own carefully constructed group, called the Bolsheviks, or the majority to...

Command And Market Economies Essay

When considering the advantages and disadvantages of command and market economies, you may notice that they are usually straight forward, yet, both advantages and disadvantages may merge at times, resulting in an unclear issue, that could be debatable whether it is for the good of the society, or for the government. Therefore, what I am trying to say, is that no matter how hard you try, it is always impossible to debate on which economic system is better. Both have their good points and their bad, but, each is aimed towards a community that will make use of it. This community has usually got a majority of people either rich or poor, and, social class usually effects the way people may choose their government.

In a market economy, the advantages are normally aimed towards the middle/upper class in a community. This is why we normally find them in richer communities (i.e. England, USA). The concept of a market economy is to allow people to get through life by themselves. Government usually does little to change the economy, and, the control is given to the people with the money, or, rather, the people with the businesses. The main people in such an economy are usually the consumers, the producers, the owners of private property, and, the government. These are the people with the power. The whole system revolves around private gain rather than the interests of everyone in a community. Since the rich are in control of the economy, their decisions result in the rich getting richer and the poor getting poorer. This is a perfect example of what I mentioned before, which is the way that you can not categorise all statements. This would be an advantage for the rich, but, a disadvantage for the poor. However, governments may also affect the situation, resulting in the rich getting richer, and, the poor managing to stay alive.

The entire idea of the market economy is freedom. The freedom for people to do what they want, make what they want, and, sell what they want (to a certain extent). This can also be described as being able to decide WHAT is going to be produced (what products), HOW it is going to be produced (organisation, etc.) and FOR WHOM it is going to be produced. This is definitely an advantage, as freedom and rights are allowed. Besides this, the norm is that you're wage is affected by the amount you work. The harder a person works, the more you would expect to get paid. This is another...

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Do You Agree With The Contention That The Mixed Ec

832 words - 3 pages Yes, I agree with the contention that the mixed economy is the best among all the economy systems. The mixed economy has been defined as an economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems. Not a single nation in this world practices a pure traditional, command, or market economy. They may concentrate on one of the economic policies but they can?t avoid from adding...

Do You Agree With The Contention That The Mixed Ec

832 words - 3 pages Yes, I agree with the contention that the mixed economy is the best among all the economy systems. The mixed economy has been defined as an economic system that answers the What, How, and For Whom questions through a mixture of traditional, command, and market systems. Not a single nation in this world practices a pure traditional, command, or market economy. They may concentrate on one of the economic policies but they can't avoid from adding...

Socialism - The Best Economic System

1425 words - 6 pages Today, more than ever, there is great debate over politics and which economic system works the best. How needs and wants should be allocated, and who should do the allocating, is one of the most highly debated topics in our current society. Be it communist dictators defending a command economy, free market conservatives defending a market economy, or European liberals defending socialism, everyone has an opinion. While all systems have flaws and...

What are the functions of an economic system? How are these functions performed in the Australian economy?

849 words - 3 pages Each society is faced with a problem concerning their economic state. The economic problem is that there are finite resources in relation to unlimited wants. This problem brings about the need for a system to answer questions (what, how, how much, who) that will solve it in the most effective way. An economic system is the organisational and institutional pattern through which choices are made about which wants to satisfy, and how to allocate...

Question: 'A free market system is the best way to organize the economy.' Do you agree with the statement? Explain your answer.

879 words - 4 pages Theoretically, a free market is a market where price is dependent on the mutual agreement between buyers and sellers without intervention in the form of taxes, subsidies or regulation from the government. A free market system allows producers to set their own prices and consumers to have the freedom of choice. However, there is also an unequal distribution of wealth and a high risk of monopoly by a single firm in a free market system. Faced...

The Economic Systems

2477 words - 10 pages The Economic Systems Within the overall umbrella of the word "economy", one speaks today of the market economy, the formal economy, the informal economy, the underground economy, the productive economy and perhaps even the reproductive economy, the post-industrial or post-modern economy and the global economy. Thus while the concept of an economy is not fixed but arbitrary, and may have strayed rather far from the management of household...

The Japaneese economy

692 words - 3 pages The prewar economy of Japan was a Socialist economy and the country was ruled by an emperor up to WW2 and after WW2 it started to lean towards a mixed market economy until what it is today although its government is Socialist it is leaning towards a mixed market economy.The Japanese economy is a mixed economy that leans towards market, it is like this...

Economic Way Of Thinkinging

749 words - 3 pages Economics is the social science of making sufficient choices or decisions and studies how people interact in their society in an economic way. The first chapter introduces the subject of economics and unfolds what it is all about.We live in a society where economics is a valuable need in order for us to understand and handle any problems that maybe occur in the future. The

Mergers and acquisition

1430 words - 6 pages Outline the economic arguments for and against British Home Stores (BHS) taking over Arcadia?British Home Stores has grown from a single store in South London to a multinational retail company with a major presence both in the UK and later on in overseas clothing markets. In 1986 they merged with Habitat/Mothercare to form Storehouse plc. Then in May 2000,

The Market of Azerbaijan Republic: A Transition Economy

1389 words - 6 pages The market of Azerbaijan Republic can be defined as emerging market in transition economy. There is almost no any directly related literature to Azerbaijan market that can be a good source to identify business strategies that must be pursued in this market. But because Azerbaijan market has all main features of other emerging markets, any literature relating to emerging markets or transition economies can be reviewed to provide companies with...

Passion for Learning Case Analysis

929 words - 4 pages Passion for Learning Case Analysis Background: Andrew Popell, founder and president of Passion for Learning, started a direct mail order catalogue company in 1994 that exclusively sold educational toys targeted at elementary-school children between the ages of 6 to 12. After sending out the company's first catalogue and receiving a disappointing .77% response rate, as well as discovering that specialty chains that focused on educational toys...

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