A command economy is one where the distribution of resources is determined by the government. Command economies distribute resources based on...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough homework ...
Inefficiencies: One characteristic of command economies is that they often produce too much of one thing and not enough of another. It's difficult for central planners to get up-to-date information about consumers' needs. Meeting the needs ofinternational marketsis even more complex, so command ...
In market economies, the success of a business is determined based on an entrepreneur’s ability to produce a profit. If an entrepreneur is able to turn a profit, they can reinvest it into their business and strengthen their position in the market. ...
What does economy mean? Learn about the types of economies with examples. Examine the purpose of an economy and the different kinds of economic systems. Related to this QuestionWhat is the difference between a command economy and a market economy? What is the difference between a market and co...
A market economy is an economy in which prices are freely set based on supply and demand. Unlike a command economy, a market...
The decisions necessary in economic planning are difficult to reach in a democratic state due to the many competing interests. Most planned economies, therefore, have generally existed only where the form of government is an oligarchy or a dictatorship, such as the former Soviet Union, and in In...
Command-Based Economies Command-based economiesdepend on a central government that controls the production levels, pricing, and distribution of goods. In such a system, the government owns industries deemed essential on behalf of the consumers who use them. Competition among companies is discouraged or...
Macroeconomics is naturally much bigger than microeconomics. It similarly looks at how actors make decisions but focuses on much larger actors and the ways that economies behave on larger scales. In practice, this involves a focus on the economies of states (e.g. Germany) and regions (e.g. ...
Economies of scale are cost reductions that occur when an organization is large or increases production. There are two types: internal and external.
Bigger is often better.In economies of scale, large companies with easy access to large pools of capital and labor often enjoy an advantage over small producers that don't have the resources to compete. This condition can result in a producer driving rivals out of business by undercutting them...