カテゴリー 全て - private - government - competition - command

によって Rebecca Jarvis 5年前.

167

ECONOMIC SYSTEMS

Economic systems can be categorized broadly into command and free-market economies, each with distinct characteristics and implications. In a command economy, central planning by the government dictates production and distribution, aiming for social equity and security.

ECONOMIC SYSTEMS

ECONOMIC SYSTEMS

Command Economy

Economic initiative may be suppressed due to lack of profits motive
Decision making is centralised
Lack of individual freedom and choice
People have greater security and social solidarity
Services such as health and education are provided by the government
Social ownership of land and capital
Socially equitable distribution of national income
Concerntration of power in a Ruling party
Central economic planning

Free market economy

Private wealth may be maximised at the expense of others
Could result in irresponsible behaviour by firms, i.e pollution
Competition eliminated by monopolies
All resources are only available at prevailing price
Private property
Limited government involvement
Prices and markets
Self interest