Command Economies Research Paper

Comparing and Contrasting Command and Market Economies There are two different kind of economic systems that are feasible in the world today. These two economies and market economies and command economies. Market economies are based on capitalism and free market. In this economic system individual people and businesses decide for themselves what, how, and for whom to produce. In command economies, a group of officials or the government are solely in charge of the running of the economy. Socialism is one example of a command economy. In dealing with the ownership of business and resources, market and command economies are fairly opposite. In a market economy, individuals can own and operate their own businesses. This allows them to answer the three basic questions of production for themselves. Market economies give the people participating in the economy more …show more content…
Market economies and capitalism work with very little government interference; except for a little regulation, the businesses and people involved get to do what they want. They are free to decide for themselves how to answer the three questions of production. In command economies, and especially socialism, the government regulates all aspect of business. They may allow those businesses to be owned by regular citizens, or they may not, but either way, the three questions of production are answered by the government. The government has ultimate say in what gets produced, how it gets produced, and to whom to produce it for. If the businesses are owned by ordinary citizens, then they are obligated to do what the government tells them to do. They may have control over the running of the business, but what they get to use their business for is not a decision in their hands. This makes it hard for personal economic goals to be sought after, as most decision making is out of the citizens