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Highlight the features of a command economy and discuss the merits.

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Olga $. 11.11.02 Mr. Buckley 11 Economics HL Highlight the features of a command economy and discuss the merits. An economic system must be established in order to satisfy the demands of the country for goods and services. It is also concerned with the way in which a country decides the best way to satisfy the needs and wants of the people. All economies must answer 3 main questions. What goods and services should be produced? How should the goods and services be produced? Who gets the goods and services that are produced? In this assay the merits and features of the command economy will be discussed. What role the government plays in the command economy and how the decisions made by the government effect the life in the command economy. This assay will talk about aspects like equality, unemployment, competition, monopoly and income. ...read more.


(Graph 1.1) In the controlled markets buyers and sellers exchange goods and services as determined by government. It is much easier to control in command economy. Another feature of command economic system is that in order to prevent the problems and scarcity that might occur in future the government looks ahead and foresees them. The government doesn't want individuals to have power over others, but therefore all people to be equal. Through that there is a sense of equality produced between people. People learn how to share goods, money, just everything . Sharing and helping seems to become very important and take place in everyday life. People help injured and people that are mentally ill and with physical disabilities. There is also no problem with unemployment, since all people have jobs and everybody is treated in equal manner in the command economy. This shows that all people have equal and same amount of income. ...read more.


It is also controlled that all people have a job and the same amount of income, and that the prices are at the rate where every single person can afford good or service they need to survive. There is no competition and the economy is easy controlled by the government. Of course it is good to have a boss in the economy, which is the government in the command economy. And for sure it is good that all people are equal, and there is no jealousy, but I think that in life there must be more risk taking, challenging, more opportunities to chose from. In life there must be satisfaction of unlimited wants for yourself. I think that in order to live a good life, you also want to achieve something, to be someone, to deserve to be what you are and to be proud of yourself. Words: 824 ...read more.

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