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Planned Economy
A Planned Economy or Command Economy is an economy primarily driven by the local government which chooses how much production an industry should perform. Given the myopic views of most governments, planned economies often resulted in production shortfalls and excesses, leading to general frustration of populaces where planned economies existed, such as most Communist countries prior to the 1980s.
359 Questions
What is the characteristic of a centrally planned economy?
One characteristic of a centrally planned economy is a steady money supply that is backed usually by gold or silver. This economy is moderated by the state in order to control availability.
What is a command economic system is characterized by?
A command economic system is one in which people rely on the government to decide what products will be produced and who the products will be distributed to after they are produced.
What is the difference between a market economy and a command economy?
An economy may be defined as the state of a country or region in terms of the production and consumption of goods and services, and the supply of money.
A market economy (also called a free market economy, free enterprise economy) is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system .
On the other hand, a command economy (also known as planned economy) is an economic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income
What kinds of benefits do people receive in a market economy system in a command economy system?
are the benefits do people
What are some examples of nations who use command economy market economy and traditional economy?
Examples of countries that use a command economy are the following: China Cuba Examples of countries that use a market economy are the following: United States Canada Assuming you mean a socialized economy by way of traditional economy, below are examples of some countries that use a socialized economy Italy France Please keep in mind that no country is an absolutely pure version of each type of economy. You could say the United States, for example, shows elements of a socialized economy with its employment of social security and medicaid. You could also say that Cuba, shows elements of a market economy. Even, North Korea, which would be considered one of the most extreme examples of a command economy still has "free enterprise zones" and has condoned (or at least not quickly repressed) a healthy black market for goods and services...the black market being its own market economy.
A country moving from a command economy to a market economy will most likely?
reduce government control of business.
What reflects an accurate argument in favor of a command economy?
Which statement reflects an accurate argument in favor of a command economy
What is one drawback of command economy compared to a free market economy?
Answer this question…
A command economy reduces innovation by requiring all businesses to follow government orders.
What was the impact of the Soviet Command Economy adopted during the Mao era?
Heightened the abuse of political power throughout the country P.S u from k12 aint cha!
What country is a command economy?
The command economy is a key feature of any communist society. China, Cuba, North Korea and the former Soviet Union are examples of countries that have command economies.
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.=
What is a national conference?
Meeting at which a paty's delegates vote to pick their presintial and vice-president candidates.
Can economic decisions benefit consumers in a free enterprise economy than in a command economy?
Economic decisions can benefit consumers more so in a free enterprise economy rather than in a command economy. This is so due to the fact that the free enterprise economy focuses on production and distribution being privately owned. This also allows the ability to allow products and services to be on a supply and demand basis.
What can happen in a planned economy that does not happen in a market economy?
nothing much happens ...
Does each person get assinged a job in a Centrally Planned Economy?
Generally, yes, and they are not allowed to switch from this job without permission from the central planners.
add. The latter part is not necessarily so. In Singapore for example the government ran a policy of "a job will be found for every one who can work." And people were encouraged to take up training to fit them for a better job. Singapore's main aim was to move the country from a 'low value added' economy to a 'high value added' one. And in their execution they were successful. they rid themselves of the tyre and vehicle assembly industries, and substituted electronics and semiconductors.
Singapore added a few extras that were not very popular - such as street vendors jobs were not allowed to be held by folk of age less than 60.
But the process worked.
Why is a free market economy more beneficial than a socialist form of economy?
This is not strictly true. Each have their benefits and cons.
A free market economy is one in which the allocation of scarce resources and the price set to the consumer is completely set by market forces.
Pro's:
-People who have jobs benefit a lot since they are not having to pay for others welfare. -Prices can often be lower due to greater efficiencies and competition.
Con's:
-People who end up in a bad situation in life will struggle to get out of the rut and could end up dying due to a lack of welfare support, this breeds great inequality.
-There is little or no way of controlling business due to a lack of government intervention meaning that firms can start monopolies and cartels which can easily lead to abuse of the consumer.
A socialist form of economy is completely the opposite and would sort of take the form of a Communist one; the other way to describe it is a Command economy; one which is controlled by the Government.
For example the UK is a mixed economy which until recently was 60% Free Market and 40% Command; it was one of the fairest systems in the world equality wise but suffered from great inefficiency.
On the other hand the USA of the same time period was around 90% Free Market and 10% Command (Don't quote me on that however may have been 80:20). Now this was very efficient however they suffered from hugely deprived areas with large Multinationals abusing consumers; especially in the wake of New Orleans.
A good book to read on this subject is Naomi Kleins: 'Shock Doctrine.' Furthermore for an extreme socialist economy look up the bad old days of Russia when it was still the Soviet Union.
