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Why did adam smith insist that market economy would produce consumer goods more efficiently han a command economy?
Wiki User
∙ 11y ago
To maximize profits.
The "invisible hand" is the interaction in markets where those who are able to provide goods or services find agents who demand those those goods or services and are willing to exchange them for something the supplier deems of value. If the demand is met, or there is demand by another agent in the market willing to provide compensation to the supplier that is deemed of more value, the resources in the market look to supply the next need for valued consideration.
In a command economy, supply may not be demand driven. This may result in excess capacity devoted to something that does not allow the highest value to be placed on the supplied goods or services. A transactional inefficiency may then be the result of a command economy that is not focused on markets.
Kathryne Hintz
Ben Pouros
To maximize profits.
The "invisible hand" is the interaction in markets where those who are able to provide goods or services find agents who demand those those goods or services and are willing to exchange them for something the supplier deems of value. If the demand is met, or there is demand by another agent in the market willing to provide compensation to the supplier that is deemed of more value, the resources in the market look to supply the next need for valued consideration.
In a command economy, supply may not be demand driven. This may result in excess capacity devoted to something that does not allow the highest value to be placed on the supplied goods or services. A transactional inefficiency may then be the result of a command economy that is not focused on markets.
Wiki User
∙ 9y agoTo maximize profits.
The "invisible hand" is the interaction in markets where those who are able to provide goods or services find agents who demand those those goods or services and are willing to exchange them for something the supplier deems of value. If the demand is met, or there is demand by another agent in the market willing to provide compensation to the supplier that is deemed of more value, the resources in the market look to supply the next need for valued consideration.
In a command economy, supply may not be demand driven. This may result in excess capacity devoted to something that does not allow the highest value to be placed on the supplied goods or services. A transactional inefficiency may then be the result of a command economy that is not focused on markets.
Wiki User
∙ 10y agoThe "invisible hand" is the interaction in markets where those who are able to provide goods or services find agents who demand those those goods or services and are willing to exchange them for something the supplier deems of value. If the demand is met, or there is demand by another agent in the market willing to provide compensation to the supplier that is deemed of more value, the resources in the market look to supply the next need for valued consideration.
In a command economy, supply may not be demand driven. This may result in excess capacity devoted to something that does not allow the highest value to be placed on the supplied goods or services. A transactional inefficiency may then be the result of a command economy that is not focused on markets.
Wiki User
∙ 11y agoTo maximize profits, firms in market economies strive to efficiently supply and distribute what consumers want.
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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.
Government tells producers how and what to produce?
Command economy
What to produce of command economy?
The government and I am in sixth grade
In what economy the government answer the three economic questions?
three economic questions what to produce how (much) to produce who gets the goods Answer: Command economy.
Who sets the price number of items to produce and for whom to produce in a command economy?
alfred wegner
Why did Adam Smith insist that a market economy would produce consumer goods more efficiently that a command economy?
To maximize profits, firms in market economies strive to efficiently supply and distribute what consumers want.
In a command economy which factor answers the question of what to produce?
government decisions
How does the command economy decide how to produce?
The command economy looks at what is needed, and what is available, and allocates materials directly to production. There is often little choice in the selection of consumer goods, as there would be in a market-driven economy.
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.
Government tells producers how and what to produce?
Command economy
What to produce of command economy?
The government and I am in sixth grade
In what economy the government answer the three economic questions?
three economic questions what to produce how (much) to produce who gets the goods Answer: Command economy.
There is consumer sovereignty in a capitalist economy?
yes there is ..... consumer sovereignty is when the consumers are in control of what is produce for example the U.S.
Who sets the price number of items to produce and for whom to produce in a command economy?
alfred wegner
What is centrally planned socialism?
A command economy is one where the government decides what to produce, how to produce it, and who to produce it for. Socialism in its entirety is a command economic system. The term 'centralized' is synonymous with 'command' when it comes to types of economies.
When a government tells people what to produce how much to produce what price to charge and what wages to pay its an example of what?
a command economy.
How does Vietnam demonstrate that it is a command economy?
=Vietnam can be demonstrated as a command economy because it is a dictatorship and almost all of the decisions are made by the government, leaving no choice for individuals rights. In the command economy the government decides what to produce, distribute and consume. The government also decides the price of the product, how to make the product, how to sell the product, and also who to sell it to. Basically in a command economy there is no freedom. China used to have a command economy, but it no longer does not. Saudi Arabia is another example of a command economy too. This is how Vietnam can be demonstrated as a command economy.=
