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In a purely socialist economy, the price of a good would be determined by society directly and not through other types of mechanisms, such as markets. In history, this has usually taken the form of a state (acting on society's behalf) to control the price of goods and services. Controlling the price occurs by decree and a planned, socialist economy attempts to produce exactly the right number of intermediate and final products to match the expected supply with determined demand.
Wiki User
∙ 12y ago
Wiki User
∙ 10y agoIn command economy prices are determined by the government authorities and prduction of an output the cost of raw material used in it.
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Who decides where people will work in a centrally planned economy?
I don't quite understand your question, isn't the definition of a centrally-planned economy one in which the government plans the economy? I imagine that in most centrally planned economic schemes the government would either determine the prices or set a cap for essential goods.
In which type of economy would prices be set by the government?
command economy
What best describes a command economy?
A command economy is one where a central authority controls all economic activity, 'commanding' what products are produced, and what crops are grown, investment and prices etc.
What was the Gosplan?
The Gosplan was a group of people during the reign of Stalin who set wages and prices to improve the economy.
A free market economy in which prices are set by economic forces of supply and demand is sometimes described as?
Laissez-faire
Who decides where people will work in a centrally planned economy?
I don't quite understand your question, isn't the definition of a centrally-planned economy one in which the government plans the economy? I imagine that in most centrally planned economic schemes the government would either determine the prices or set a cap for essential goods.
In which type of economy would prices be set by the government?
command economy
disadvantage of planned economy?
Lack of incentives to work hard in planned economy Sometimes poor quality of goods and shortages Failure to meet set ideals or consumer needs. Lack of varieties of goods and services Consumers can choose only those goods or services which are produces and decided by the government
How did collective in the Soviet Union avoid the competition that drives a free marketer economy?
Collectives in the Soviet Union avoided competition that drives a free marked economy in multiple ways. Production was centrally planned, and compensation was not related to production. Firms and individuals were given quotas which were to be met and were allocated endowments to meet those quotas. People could not set the price of goods because there was no price, and there was no competition between firms because quotas were handed down by the state, not by demand.
What best describes a command economy?
A command economy is one where a central authority controls all economic activity, 'commanding' what products are produced, and what crops are grown, investment and prices etc.
What was the Gosplan?
The Gosplan was a group of people during the reign of Stalin who set wages and prices to improve the economy.
A free market economy in which prices are set by economic forces of supply and demand is sometimes described as?
Laissez-faire
What type of economic market does not need to advertise?
A market where there is no choice, maybe, like a command economy, where goods and prices are set by the government.
Why do centrally planned economies have difficulty meeting consumers need?
In a free-market economy, the various suppliers of goods can increase or decrease production in relation to sales in the marketplace. This means that consumer's needs can be properly taken into account by the suppliers. Conversely, in a centrally planned economy, there is a long time differential between the supply as determined by the government and any changes that the government may make to that supply. As a result, the marketplace cannot adequately take care of consumers' needs.Additionally, it is not clear that the government will allocate production based on what the consumers actually want to consume. Governments may choose to produce specific products that they wish more members of the populations to have and fewer products that they wish to not be used in society. The amount of product in the market could be set based on bribes and corruption. The amount of product in the market could be based on government interest in companies making the product. There are even cases where the government wants to properly map consumers' needs, but are unable to accurately forecast those needs.
How does the invisible hand of competition set a market price in a market economy?
b. Shortages always raise prices and surpluses always reduce prices until competition produces a price where there are no more surpluses or shortages. ;D
What are the essential elements of market economies?
A market economy requires prices to be set by supply & demand, w/out gov't interference. It is run entirely by the market itself.
Is China's economy a market or command?
China is an odd character when it comes to the economy. China has a state-directed, right-wing economic and political apparatus. This means that there are elements of a planned economy (a command economy) and elements of capitalism (a market economy).What generally happens is that industries in China are required to sell to the Chinese government a golden company share, which means that the government can override decisions of the company leaders and often uses this power. The use of such a power is typical of command or planned economies, especially when the Chinese government orders the company to create or produce a product that they would otherwise not choose to produce.However, the majority of corporate decisions are made by the independent company officers, which is typical of a market economy. There are, generally speaking, no quotas and companies are allowed to produce the quantities of product that the market will bear. Prices are set by companies for most products and market infiltration by region is almost entirely at the company's discretion.
