Command Economy Vs Free Enterprise Essay

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Free Enterprise Vs. Command Economy 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 Another name for free enterprise is free market. This type of economy is an economic system in which private businesses operates in competition and largely free of state control. The free enterprise system operates to five main principles.
1. The freedom to choose their own businesses. Having freedom to choose their own businesses gives them the right to decide what kinds of fees to have. What kinds of hours to work. What type of people you want working for you. They just get to have complete control on
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In doing so it helps them figure out prices of goods and services just by looking at the supply and demand. The free enterprise system uses a thing called gross domestic product, which is the value of all goods and services produced in a country in a given year. When value comes into play it is based on the utility, which is the usefulness of the product and the scarcity, which is the limited availability of it. Value today is not what it used to be like many years ago. People are not realizing it, but there is a big problem that is only going to get worst. Which is that the people's wants are unlimited while material is scarce. In a free enterprise economy there are four other types of economies. One being a Market economy and the economic decisions are based on the actions of buyers and sellers. They also use what is called voluntary exchange, buyers willingly exchange for goods in the market place. Then there is the Traditional economy, which they do things the way they have always been done. Another one is the Command
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