Command And Market Economies

This type of economy works in the private sector of business ie. Individual firms. A command economy is an entirely different system in which a central government decides how to answer the three central economic questions. The government would decide what is to be produced, how it is to be priced etc.

The industrial expansion of the Soviet Union resulted in one of the greatest economic growths for a single country that the modern world has ever seen. This economic growth ultimately led to the USSR becoming one of the world’s only two superpowers in the post-WWII era. Much of the country’s economic growth occurred because of the USSR’s use of a command economy, which is “an economy in which production, investment, prices, and incomes are determined centrally by a government” [1]. Using a command economy, the USSR was able to force industrialization in certain sectors in which pre-Soviet Russia highly struggled. One of these sectors was the Nuclear Power sector. Ultimately, Soviet successes in the nuclear power industry were highly evident

The most important economic resource is capital. Capital is what really gets the business up and running. Without capital, no money is earned and the business fails. Capital allows for more locations nationwide. Capital is necessary in any business.

Free enterprise and Command economies tend to contradict each other with the way they handle the production and growth with in an economy. But when a Mixed economy is into play these two different economies get combined. In this essay I will explain both of the economies and tell how they work together

Everyday you consume things may it be food, drinks, or prescription drugs. Most people will just absent mindedly intake these products subconsciously knowing that they are monitored by government organizations ensuring your safety. It has not always been that was and has progressed greatly throughout the years. although all consumer safety organizations may not be reputable, they do much more good than harm. Consumer safety is something that is extremely important to the American family, and has help thousands of people survive. Consumer safety is something that has allowed America to progress to where it is today.

When producing a substance that may be hazardous the amount of rules and regulations that must be followed can be overwhelming. Fortunately for parents and the safety of others, the Federal Hazardous Substances Labeling Act was put into effect in 1960. This was due to the numerous of deaths associated with coming in contact with, and ingestion of a hazardous substance. This act was essential to the protection of our nation’s consumers. Many reasons or regulations are given in regards to safety that consumer needs to know. Just a of these rules and regulations included in the Federal Hazardous Substances Labeling Act are: how to determine whether or not a product requires labeling, guidelines regarding

The Product safety Act will seek injunctions, to stop products that are hazardous to consumers, they will sometimes seek civil penalties, they make sure those products such as motor vehicles, boats, aircraft, and firearms, are regulated by other government agencies as well. Safety

On the contrary, the only jobs available are the ones that convert wages into capital. Essentially, giving people wages to buy more materials is the main goal of the market. Another key component that aids in maintaining the market economy are the three fictitious commodities which are labour, land and money. Capitalism grew as labour was turned into wages, land into rent, and money into interest. Land was owned by

In a command economic system or communist, the government promotes the ideology of social cohesion in which all people are viewed as equal regardless of their status or educational background. Everyone within the system is given the same equal share of opportunities. On top of that, the government owns everything such as the businesses and industrial productions where they have total control of the distribution. The government provides its citizens the opportunities within the work force to supply for their families by contributing their part in the work to benefit the profits while at the same the citizens may suffer sanctions if they should fail to contribute on their part in which it produces an overall direct benefit for the whole society.

This means no fancy lettering that resembles graffiti or an artistic form of fonts. Then, the regulation should also have different health warnings on every box, everything from minor implications that can occur to more drastic possibilities like cancers and even death. Finally, to burn a fierce mental image there should be a picture of the warning next to the health warning text boxes. These solutions may not affect people whom have been consumed by these products but, will weave our future generation to have no interest in the product.

When producing a good, a business must consider the factors of production. The factors of production are land, labor, and capital. Some consider time a fourth factor of production. Successful businesses often find ways to cut costs in land and labor to produce more profit. Personally, I think capital is the most important factor of production because land and labor can often be obtained with enough money. Time is also important and is much different from the other factors of production because it cannot be replaced.

Market economies are based on consumers and their buying decisions rather than under government control. Trends and popularity generate what businesses produce. The producers choose how to make

Factors of production include the items needed in order to produce goods and services. Some examples of factors of production are the machinery or tools needed, the buildings or land including natural resources, as well as the labor or employees. They may also be referred to as land, labor, and capital. (Mankiw, N.G. 2014, P.374) If we are missing any of these items, we would not be able to produce the goods and services intended.

A command or planned economy is a system economy where everything about economy is controlled by the government. This means that the government determines what kinds of goods and services to be produced, using a method or manner of goods and services will be made up and who will consume those goods and services. So that, a command economy, it is easier for the government to control the inflation, unemployment and other economic problems. Command economy is benefit for the society because the government seeks to provide for everyone and it maximizes social welfare.

Every running business needs working capital. Even a business which is fully equipped with all types of fixed assets required is bound to collapse without adequate supply of raw materials for processing; cash to pay for wages, power and other costs; creating a stock of finished goods to feed the market demand regularly; and, the ability to grant credit to its customers. All these require working capital. Working capital is thus like the lifeblood of a business. The business will not be able to carry on day-to-day activities without the availability of adequate working capital. Subsequently, with the usage of fixed assets resulting in value additions, the raw materials get converted into work in process and then into finished goods. When sold on credit, the finished goods assume the form of debtors who give the business cash on due date.