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What are some disadvantages of plbanned economy?
The disadvantage of a planned economy is that there is lack of profit which usually leads to the inefficiency of the firms.
Capitalism is unfair?
Capitalism is a system driven by private ownership of means of production. This leads to a system in which an entire nation's populace is driven by the desire to make profits and accumulate wealth. A true capitalist system is a free market economy with NO interference from any governing body. Many people view this system as unfair because, once a bit of wealth is accumulated or inherited, it becomes easier to accumulate more wealth. However, it is exceptionally rare and nearly impossible for someone who has very little wealth to accumulate any, hence the saying "you need money to make money". This leads to the concentration of most of a nation's wealth among a tiny percentage of the population, with the vast majority of a nation's population sharing the rest. Without some form of interference from the government or the formation of powerful worker's unions, capitalism inevitably leads to the concentration of power among the few, and the exploitation of the many. This is why a capitalist economic system can be seen as "unfair".
What is the result in a reduction of GDP?
The reduction of GDP usually leads to job loses and a drop in the growth of economy. It also leads to more imports than the exports.
How do savings and investments influence economic growth and prosperity?
They promote economic growth by adding money into the economy, which is then spent on goods and services. That leads to greater availability of funds to lend, which leads to lower interest rates, which leads to greater borrowing for business investment, which leads to business expansion, which leads to more employment, which leads to economic growth.
What is meant by the term 'business' when referring to the three role-players in the economy?
Businesses are the growth engine of the most successful economy...
How do countries respond to the unequal distribution of resorces?
countries create differences that affect the economies of the world's countries. The competition also leads to conflict.
What leads to irregular zone of inhibition?
excess liquid on paper disk leads to unequal radial diffusion
Do policies create unequal distribution of resources?
Any government will have redistibution of wealth and resources as one of its main policies. It takes away money from companies and individuals through taxes and gives it to other companies and individuals through government contracts, subsidies, welfare and foreign aid. Whether this leads to ´unequal´ distribution is mostly a matter of perspective. Money spent by a country on defence or welfare might at the same time be considered as extravagant by some and as totally insufficient by others. There will be only consensus on this in extreme cases where government policies only favor a small group of already very rich people while keeping a great majority in poverty.
Why does class conflict arise in a capitalist economic system according to Marx?
Marx argued that class conflict arises in a capitalist system due to the inherent exploitation of the working class by the capitalist class. Capitalists seek to maximize profits by paying workers as little as possible while extracting surplus value from their labor. This unequal power dynamic leads to tension and conflict between the two classes over the distribution of wealth and resources.
How might democratic reforms and improved trade agreements contribute to a stronger economy in Mexico?
Democratic reform leads to political stability and human development which leads to improve productivity and economy.
What are the Problems of socialization?
Socialization leads to apathy. Apathy in a majority of people leads to less production and a weakening economy. A weakening economy will result in the need for more socialization
What is a part of the American Dream that is undermined in The Great Gatsby?
wealth leads to happiness
How does tsunamis affect the people?
1. makes people loose their loved ones and that loose of life of many people leads to reduction in population which also has its major side effects. 2. leads to destruction of property thus leading to lack of jobs,homes,food,schools,hospitals and even roads which affects a country's infrastructure. 3. leads to pyschological/mental disturbances of human beings which later affects the growing of a country. 4. leads to unequal distribution of resources and therefore can cause crimes such as robbery,murder,prostituion etc
What are some disadvantages of plbanned economy?
The disadvantage of a planned economy is that there is lack of profit which usually leads to the inefficiency of the firms.
Why is it necessary to come up with theories to explain what happens in the economy?
Most people are affected by the state of the economy, often quite seriously. A bad economy leads to unemployment, poverty, and in extreme cases, even starvation and death. A good economy leads to prosperity and happiness. So we have good reason to want a healthy economy. And in order to maintain economic health, we need to understand how our economy works.
How does unequal heating relate to the formation of tornadoes?
Unequal heating leads to air masses of different temperatures. When a cool air mass collides with a warm, moist air mass thunderstorms often form. Under the right conditions these thunderstorms can produce tornadoes.
What are the adverse effects of communal disharmony on the social fabric and economy of our country?
The adverse effects of communal disharmony on the social fabric and economy of a given country is that it leads to slow economic growth rate. It also leads to unemployment.
