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.

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        A command economy is one in which the fundamental economic questions, what, how, for whom to produce are answered by the government. Government decides where to locate economic activities, and what prices to charge for goods and services. In command economy  government also controls the factors of production and makes the decisions about their use and the distribution of income. Governments makes tradeoffs and choices. Communism is one example of a command economy, socialism another. In command economy the government supports the handicapped and people with physical disabilities. They get the same benefits and advantages as any other  working person, ...

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