Outline the differences between Command Economies and Free Market Economies

  A command economy is an entirely different system in which a central government decides how to answer the three central economic questions.  The government would decide what is to be produced, how it is to be priced etc. resulting in a far more communist state. This obviously gives the government a far more autocratic role in their economic policy in contrast to the free market economy. Products are designed with the incentive to meet consumer needs rather than to meet the wants of the richest. This way is far more practical towards ensureing the production of necessary goods.  This type of economy works under the public sector- everything is funded and controlled by the central government.

Discuss Whether there are Lessons to be Learned Between the Two Systems

  No economic system will ever work flawlessly so it is undoubtable that these two systems would be able to adapt to become more practical. For one example, in the free market economy, there have often been problems with failure to produce medicines that are seen bt medical companies to be unprofitable but that are ncessary to public health. At this point, it would be wise to adopt a more command economy in which it can be assessed which medicines are needed  and produced. The command market is also particularly able to keep unemployment at a minimum as it does not have a business cycle. In short, a command economy eliminates a dependance on individual company’s profit motives and instead work for society’s best interests.

  However, there is much to learn from the free market which allos a greater amount of privicy. For example, in a command market, this may occasionaly require government interference in people’s personal lives. You would need government permission to move to a new area so that food, houseing etc. could be accounted for.

  Genarally, it is considered wise to use elements of both systems in an effective ‘mixed’ economy. This would include a public and private sector of busineess- much like the system used in the UK. Many prducts and services such as food, clothing and media are catered for by the private sector. In this way, supply and demand dictates what is produced in what quantities. Other important aspects of society are catered for by the public sector. Healthcare and education for example, is something that everyone has an equal right to and, therefore, should not be dictated by wealth.