Providing Country Examples Discuss the Success and Short Coming in Solving Economic Problems Within Command and Mixed Economies. Compare Each of These Economic Systems and Their Effectiveness, and Specifically Indentify
1. Background
A command economy is a type of economic system in which the government centrally plans, manages, controls and makes all country’s economic decisions. Tom Gorman. (2003).
In this economic system, the central government ensures that economic decisions benefit the welfare of the society. This is done by deciding on the production of goods and services which they believe should be consumed by the people. The government owns and manages all the public services such as: Schools, public utilities (Water, electricity, transport telecom) rail lines, Hospitals, Postal services, Security services (Police and army), with no private sector involvement in the economic activities.
A mixed economy is a type of economic system in which economic activities are conducted both by the government (public sector) and the private sector. The private sector is made of privately owned businesses that aim at making profit from the sales of their products to the consumer. The public sector is made of the central government that owns and manages organisations and State enterprises. Generally, these state owned enterprises are often subsidised to cover their cost of production. To some extent, they do sell their products below production costs. Adam Hill. (2011)
A mixed economy is a mixture of private and public enterprises in which the market and the government decisions determine which goods and services are to be produced and how it will be distributed. Market forces play a major role in a mixed economy since demand and supply is not totally planned nor controlled by the central government. Tom Gorman. (2003)
2. Aims and Objectives
The aim of this assignment is to look at the effectiveness of the command and mixed economic systems, as well as their strengths and weaknesses in respect of their respective productivity and distribution.
3. Methodology
To achieve the aim of this assignment, I have used different sources to research information on these
A command economy is a type of economic system in which the government centrally plans, manages, controls and makes all country’s economic decisions. Tom Gorman. (2003).
In this economic system, the central government ensures that economic decisions benefit the welfare of the society. This is done by deciding on the production of goods and services which they believe should be consumed by the people. The government owns and manages all the public services such as: Schools, public utilities (Water, electricity, transport telecom) rail lines, Hospitals, Postal services, Security services (Police and army), with no private sector involvement in the economic activities.
A mixed economy is a type of economic system in which economic activities are conducted both by the government (public sector) and the private sector. The private sector is made of privately owned businesses that aim at making profit from the sales of their products to the consumer. The public sector is made of the central government that owns and manages organisations and State enterprises. Generally, these state owned enterprises are often subsidised to cover their cost of production. To some extent, they do sell their products below production costs. Adam Hill. (2011)
A mixed economy is a mixture of private and public enterprises in which the market and the government decisions determine which goods and services are to be produced and how it will be distributed. Market forces play a major role in a mixed economy since demand and supply is not totally planned nor controlled by the central government. Tom Gorman. (2003)
2. Aims and Objectives
The aim of this assignment is to look at the effectiveness of the command and mixed economic systems, as well as their strengths and weaknesses in respect of their respective productivity and distribution.
3. Methodology
To achieve the aim of this assignment, I have used different sources to research information on these