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How does a command economy answer the question of what to produce?
A command economy answers the question of what to produce through the government. It is the role of the government to make key critical decisions in the economy.
What is the state that makes all the economic decisions called?
The state that makes all economic decisions is often referred to as a "command economy" or "planned economy." In this system, the government centrally controls production, pricing, and distribution of goods and services. This contrasts with market economies, where these decisions are largely made by individuals and businesses through supply and demand. Examples of countries with command economies include North Korea and, to some extent, Cuba.
What is the difference between market and command economies?
In a market economy, resources are allocated to the production of goods and services on the basis of decisions made by individual businesses anticipating customer needs and desires. The communication link between producer and consumer can be direct. In a command economy, resources are allocated to the production of goods and services on the basis of decisions made by government technocrats, usually based on directives from a centralized political body anticipating the needs, and possibly wants, of the nation and its citizenry. The communication link between producer and consumer is routed through and interpreted by technocrats, who are often employed by politicians that may or may not have been elected by the citizenry (consumers).
What is an example of command economy in the US?
The United States does not operate as a command economy; it is primarily a mixed economy. However, certain sectors, such as during wartime, have seen elements of command economy practices. For instance, during World War II, the government controlled production, directed resources, and set prices through agencies like the War Production Board to ensure efficient mobilization for the war effort. This approach exemplified command economy principles within a predominantly capitalist framework.
A country followed a command economy. Now it plans to follow a capitalist economy. Which of these changes will occur in this country due to the change in the style of economy?
Transitioning from a command economy to a capitalist economy will likely result in increased private ownership of businesses and a reduction in government control over economic activities. Market forces will begin to dictate prices and production, encouraging competition and innovation. Additionally, there may be a shift in consumer behavior as individuals gain more choices and the ability to influence demand through their purchasing decisions. This transition could also lead to challenges such as income inequality and the need for regulatory frameworks to ensure fair practices.
How does a command economy answer the question of what to produce?
A command economy answers the question of what to produce through the government. It is the role of the government to make key critical decisions in the economy.
What is the state that makes all the economic decisions called?
The state that makes all economic decisions is often referred to as a "command economy" or "planned economy." In this system, the government centrally controls production, pricing, and distribution of goods and services. This contrasts with market economies, where these decisions are largely made by individuals and businesses through supply and demand. Examples of countries with command economies include North Korea and, to some extent, Cuba.
What is a direct democracy about?
Direct democracy allows citizens to make policy decisions through a majority vote. In contrast, representative democracies allow citizens to elect representatives to make policy decisions for them.
Who determines what goods are produced in a market economy?
The Market(consumers... through their decisions) does it.
What is the difference between market and command economies?
In a market economy, resources are allocated to the production of goods and services on the basis of decisions made by individual businesses anticipating customer needs and desires. The communication link between producer and consumer can be direct. In a command economy, resources are allocated to the production of goods and services on the basis of decisions made by government technocrats, usually based on directives from a centralized political body anticipating the needs, and possibly wants, of the nation and its citizenry. The communication link between producer and consumer is routed through and interpreted by technocrats, who are often employed by politicians that may or may not have been elected by the citizenry (consumers).
What is a direct democaracy?
A direct democracy is a form of government in which citizens participate directly in decision-making processes, rather than through elected representatives. This can involve voting on specific policy issues or laws through referendums or other mechanisms, instead of relying on representatives to make decisions on their behalf.
Does liberalism undermine or promote democracy?
Socialism can promote democracy, but it ultimately depends on the type of socialism we are talking about. Traditionally, socialism promoted economic democracy, which means equal power relations and collective-decision making in the workplace. This may have taken the form of direct democracy on the part of each worker, or it might have meant democratically electing management. This type of democracy is still promoted by modern day market socialists and advocates of decentralized planned economies. If we are talking about the type of socialism that existed in the Soviet Union and "Communist states", then many political scientists would say no, this type of socialism did not promote democracy. The Soviet Union had a command economy, where decisions were made in a hierarchical chain-of-command. Ironically, the Soviet model of "socialism" was inspired by capitalist management practices known as Taylorism and scientific management.
Which type of democracy do the people make decisions themselves?
Direct democracy is a form of democracy where citizens directly participate in decision-making processes, voting on policies and laws themselves rather than through elected representatives.
How does each society determine who will consume what is produced?
Societies determine who will consume what is produced through various systems such as market economy, command economy, traditional economy, or mixed economy. In a market economy, pricing and consumer demand play a significant role in allocation. In a command economy, the government decides on distribution. Traditional economies follow customs and traditions, while mixed economies combine elements of both market and command systems.
What are the key differences between direct democracy and representative democracy?
Direct democracy involves citizens directly participating in decision-making processes, such as through voting on laws and policies. Representative democracy, on the other hand, involves citizens electing representatives to make decisions on their behalf. In direct democracy, the people have more direct control over decision-making, while in representative democracy, elected officials make decisions on behalf of the people.
New England town meetings are commonly cited as the closest approach in America to?
Direct democracy, as they allow citizens to come together to make decisions on local issues through open discussion and voting.
What are the differences between direct democracy and representative democracy?
Direct democracy is a system where citizens directly participate in decision-making, such as through voting on laws and policies. Representative democracy, on the other hand, involves citizens electing representatives to make decisions on their behalf.
