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Angelina_Jolie [31]
3 years ago
11

Compare the ways in which command economics and market economics effect a workers life?

History
1 answer:
Serggg [28]3 years ago
6 0
Command Economies are typically bad when it comes to a person wanting to make a profit. They focus around (typically) economic equality and lack economic efficiency. Generally speaking, in a command economy, resources are allocated by a Central Planning Committee. This generally will lead to several shortages and/or surpluses in products since the demand/supply can be spontaneous.
Command=Bad

Market Economies are focused around making a profit and Economic Efficiency. Basically, people will be rewarded based on how well resources are allocated among the public. For example, take a parking lot like downtown. Generally in a Market economy, we focus on placing as many cars in the lot as possible and using the space to its full potential. However, in a Command, many in these economies will try to allocate the space so that (strictly for example) 3 small, 3 large, and 3 medium vehicles are parked- thus economic equality.
Finally, with a market economy, there tends to be less shortages and less surpluses, since we operate through the Laws of Supply and Demand in which an equilibrium price will be automatically established through buying and selling
Market=Good

Hope it Helps!
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