Who makes all the decisions in a command economy. Who makes the three basic economic decisions made in a command economy? 2022-10-29

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A command economy, also known as a planned economy, is a system in which the government makes all economic decisions rather than allowing the market to dictate them. This means that the government determines what goods and services will be produced, how they will be produced, and for whom they will be produced.

In a command economy, the government plays a central role in the allocation of resources and the distribution of wealth. It sets production targets, establishes prices, and determines who gets what resources. The government may also control the distribution of goods and services through the use of rationing or other means.

One of the main advantages of a command economy is that it can be used to achieve specific social and economic goals, such as full employment, increased efficiency, and equality. The government can also use a command economy to direct resources towards industries that are deemed strategic or important to the country's development.

However, command economies have several drawbacks. Because the government makes all economic decisions, there is little room for innovation or entrepreneurship. Without the forces of supply and demand to guide economic activity, it can be difficult for the government to accurately predict the needs and wants of consumers. This can lead to shortages, surpluses, and inefficiencies in the economy.

In addition, command economies can be prone to corruption and abuse of power. Without the checks and balances provided by a market system, those in positions of authority may use their power to benefit themselves or their favored groups, leading to economic inequality and unfair distribution of resources.

Overall, a command economy is a system in which the government makes all economic decisions, including the allocation of resources and the distribution of wealth. While it can be used to achieve specific social and economic goals, it also has several drawbacks, including a lack of innovation and a potential for abuse of power.

Who makes command economic decisions?

who makes all the decisions in a command economy

Disadvantages of a Command Economy A planned economy impedes innovation. Often these decisions are based on customs, traditions, and religious beliefs. Command economy disadvantages include lack of competition and lack of efficiency. C efficient, as the economy is producing goods at the lowest possible cost. You just studied 19 terms! Who makes decisions in command economy? This would best be represented by a A movement down Iraq's production possibility frontier. The Soviet Union sought to guarantee every able-bodied citizen a job that corresponded with their education and skills if this occupation was useful for society as a whole. A command or planned economy occurs when the government controls all major aspects of the economy and economic production.

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Who makes the three basic economic decisions made in a command economy?

who makes all the decisions in a command economy

This is most likely to be a A "poor" country because such a nation has difficulty devoting many resources to the production of capital goods. D In a command economy the government answers the questions of what to produce, how to produce it, and how to distribute it. The government decides what goods and services are produced, how they are produced, and how and to whom they are distributed. This refers to government ownership over all means of production, quotas, and incomes. Will China maintain its strong economic growth in the years to come? Since the days of Adam Smith, economists and public figures have debated the problem of overproduction and underconsumption, its corollary.


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Who makes economic dicisions in command economy?

who makes all the decisions in a command economy

A variety of administrative efforts, such as commands, laws, and national goals, are used to coordinate complex social and economic systems. C The opportunity cost of time for housework decreases, because increased earning power makes individuals less likely to do their own housework. C shift of Iraq's production possibility frontier toward the origin. From Wikipedia, the free encyclopedia. All decisions are made by the government and all businesses are controlled by the government.

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Who makes decisions in a command economy?

who makes all the decisions in a command economy

When does the government control the economic production? Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. This allows countries importing Chinese goods to adjust or disregard Chinese prices and costs when determining whether the imported goods are being dumped onto their markets. Understanding Command Economy Also known as a planned economy, command economies have as their central tenet that government central planners own or control the means of production within a society. A In its pure form, it is also known as a laissez-faire economy. B inefficient, as the combination of goods and services produced is not what people want. C they can grow more pineapples using the same resources than other pineapple growers.

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Who makes the most economic decisions in a command economy?

who makes all the decisions in a command economy

Capital, as economists use the term, A is the money the firm spends to hire resources. B Given scarce resources, how exactly do societies go about deciding what to produce, how to produce it, and for whom to produce? D only when the economy produces outside the production possibility frontier. Economists, however, identify six major functions of governments in market economies. In a command economy also known as a planned economy , government central planners determine what goods and services will be produced, the amount of goods and services produced, and at what cost to the consumer. D as more of a good is produced the quality of that good declines and therefore the costs of production increase. More specifically, the government decides what and how much a country will produce, then sets the price for these goods to sell and export. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated.

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who makes all the decisions in a command economy

He enforced a strictly planned economy. If someone has a comparative advantage in growing pineapples, A they can grow pineapples at a lower opportunity cost than other pineapple growers. Qatar Why is Qatar so rich? Who makes decisions traditional economy? Command economy advantages include low levels of inequality and unemployment, and the common objective of replacing profit as the primary incentive of production. What are the major problems with a command economy? In a laissez-faire system, the government does not interfere in the economy. The way each communicates through prices and purchases where prices signify offers by suppliers to produce a good at a given amount and consumers purchase those items to signal whether the offer is reasonable. D Malaysia's production possibility frontier will shift up and out farther and faster than Japan's. How are economic decisions made in a command economy? B consumers would be willing to pay higher prices for the good as more of the good is produced.

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How are decisions made in a command economy?

who makes all the decisions in a command economy

Under this system, the government is seen as the expert. Production in the market economy is not planned, not organized by state authority but is determined through the demand of goods and services in the market. Government planners, not private individuals, make the economic decisions in a command economy. The government decides what goods to produce and how to distribute them. What decisions are made by government in a command economy? B The government decides what is produced. It is capable of allocating resources efficiently and minimizing unemployment by placing workings in jobs that match their skills.

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How are economic decisions made in a command economy?

who makes all the decisions in a command economy

. The government decides what goods and services are produced, how they are produced, and how and to whom they are distributed. What is meant by command economy? A command economy is where a central government makes all economic decisions. That includes quotas and price controls. Disadvantages: It does not meet the demands of consumers, it does not give people a reason to work hard, and it requires a large decision-making government agency. Government agencies may also set prices or give consumers rations directly.

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