Wednesday 25 June 2014

Compare Command and market system?

Compare Command and market system?
Command systems are controled by a central planner, who decides what to produce, how to produce it, and who gets what's produced. This sytem is one of the more ineffecient systems and within it, there's much waste. Factors of production are government owned, there's limited technology, very little growth, and low levels of productivity. Present day examples would be North Korea or Cuba.Market systems are more free from government control. Consumers decide what is produced, the producers determine the best means of production, and the actual price decides who gets the product/what's being produced. There's a much higher level of productivity in this system. Change is quick, it's very high tech, and it's also very effecient. A present day example of this would be Hong Kong.

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