Economics: The Market System And The Command System

896 Words 4 Pages
In today’s sociality everything we purchase and sell revolves around economics. Economics is a set of institutional arrangements that coordinate in making goods and services (McConnell, Brue, & Flynn, 2013, p. 32). Economics is comprised of two systems, the market system and the command system. These are two systems that are used throughout the world and are mixed together.
Market System
The first system is the market system that focuses more on capitalism, which is the term used to describe the economic system used in the United States. The market system allows businesses, firms, and entrepreneurs to use and discard the resources they own in ways that they see fit. Also the market system utilizes markets and prices to steer the economy in
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This system focuses on the government; the government in this system is in control of the whole economy. The government in this system holds all the private property and thus it controls all firms and businesses. By doing this the government gets to determine the prices that products are sold at, the also determine what products are going to be made, the control the output of products and resources, and the government controls the organization of resources. The command system assigns a central planning board made up of government officials to make a majority of decisions that has to with the economy. This allows the division of output between capital and consumer goods to be divided and distributed amongst firms. `
Compare and Contrast
The economic system is composed of these two systems, and cannot exist without them. This means even though these systems are practiced differently and have different effects on the economy, both of these systems have similarities that can be compares.
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In order to keep stability and promote growth the government holds all land and resources so they are not wasted. This means resources cannot be wasted and they can last much longer. This keeps the command system going and striving.
Private Property and Innovations
In the command system private property is under the governments control so everything is is watch and created through them. The market system protects the private property that individuals have acquired by the economic transaction of a mutual agreeable. This allows people to be compensated for their property.
Conclusion
In conclusion, economics is in broken into two systems command system and market system. The command system has the government in command and it controls the economy, the market system allows people to feed the economy. Both systems are different in the way they are practiced but they are also similar. Both of these systems work for the same goal of strengthening the economy and benefiting the

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