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    Yohanna Puntanar
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    The document summarizes the key advantages and disadvantages of a command economy compared to a market economy. A command economy gives the government control over production and distribution of goods, which can help distribute resources evenly but limits individual freedom, private property, and innovation. In contrast, a market economy is based on individual choice and private ownership, which can promote entrepreneurship but leads to unequal distribution of wealth.

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    Appled economics terms

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    The document summarizes the key advantages and disadvantages of a command economy compared to a market economy. A command economy gives the government control over production and distribution of goods, which can help distribute resources evenly but limits individual freedom, private property, and innovation. In contrast, a market economy is based on individual choice and private ownership, which can promote entrepreneurship but leads to unequal distribution of wealth.

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    7 views1 page

    Applied Economics

    Uploaded by

    Yohanna Puntanar
    The document summarizes the key advantages and disadvantages of a command economy compared to a market economy. A command economy gives the government control over production and distribution of goods, which can help distribute resources evenly but limits individual freedom, private property, and innovation. In contrast, a market economy is based on individual choice and private ownership, which can promote entrepreneurship but leads to unequal distribution of wealth.

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    © All Rights Reserved
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    of 1

    COMMAND ECONOMY Advantages

    - Government rules all , sometimes referred to a - Freedom, profit, innovation, efficiency


    “Planned Economy”
    Disadvantages
    - Rare Freedom, government decides what foods
    and services will be produced, and how they will - Economic good of individual is superior
    be produced and how they will be distributed - No way of providing for national defense
    - WANTS of individual consumers are rarely - Unequal distribution of wealth
    considered - Social concerns : making money
    Advantages
    (Tram Nguyen, 2015)
    - Funds and time used for other purposes https://www.youtube.com/watch?
    - Resources distributed more evenly v=RDkPA4H5G54
    - Less socio-economic inequality
    - Seek to provide for everyone
    - Nation’s resources used to produce things not What type of economy does the
    profitable in a market economy Philippines adopt?

    Disadvantages The Philippines adopts a mixed economic


    - little entrepreneurship system whereby the economy includes a
    variety of private economic freedom,
    - lower-quality products
    including industries that are privately
    - little motivation in the workplace
    owned, together with centralized planning
    - Government responsible for people’s lives
    and government regulation.
    - No private property = no motivation As an industrialized country, the Philippines
    2 TYPES OF COMMAND ECONOMY is moving from an economy that was based
    on agriculture to an economy dominated by
    1. Socialism – government owns some or all of manufacturing services
    the factors of production (Karl Max, )
    © 2017 IAC Publishing, LLC
    2. Communism – more extreme socialism, no https://www.reference.com/government-
    private ownership of property politics/type-economy-philippines-adopt-
    Example : NORTH KOREA db33ee7430e806a2#
    Export : Essentially non-existent
    Food production : Insufficient food
    production

    *Chinese government are currently and forcefully


    bringing their communist ways into Vietnam.

    MARKET ECONOMY

    - Based on individual choice


    - Consumers and producers are free to make
    decisions
    - Individuals act in their own interest and benefit
    others while doing so (Adam Smith agrees)
    - Fundamentals : private property, specialization,
    consumer sovereignty (the authority of a state
    to govern itself or another state), competition,
    voluntary exchange, limited government
    involvement

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