Types Of Economies Essay

824 words - 4 pages

If I discovered a cure for the common cold, there would be many ways to let the people become aware of it, depending on the economic system. In a market economy, I would tell people by using advertisements. Advertisements are a fantastic way to get people into the loop and they are a form of spreading information. Many people would view the advertisements, and therefore decide to buy or get the medicine for the cold. Since market economies rely heavily on consumers and businesses, the more people getting the shot, the more influential it’ll be in making others want it too. In a command economy, I’d get the news of the medicine by having an announcement that makes people receive the shot. They would have no choice but to take the medicine because the government will be forcing them into obtaining it. Getting the cure to those in a traditional economy would be seemingly the hardest. Firstly, I’d let the elders of a community know about the remedy, have the information pass through them, and travel elsewhere. If the elders approve of the cure, they’ll have a great impact on influencing others into receiving it. In a mixed economy, I’d do a mix of command and market economies. I’d make numerous public announcements and advertisements that the let the people become aware of the invention. I’d then have the government encourage receiving the vaccination, but they’d not force anyone, the decision is solely up to the people. The way I’d spread news about a cure for the common cold would differ greatly based on the economic system.
Market Economies Command Economies
Who makes economic decisions? -By all members based on needs and wants
-Consumers by buying/selling in the marketplace -Central authority (government officials, dictator, etc.)
Who owns the factors of production? -Individuals and businesses -Government
What roles do consumers play in economic decisions? -Decisions made by businesses based on if consumers will buy or not -No role, only central authority

4a) The command economy has numerous disadvantages and advantages. One disadvantage is that the government makes all the decisions. This is a downfall because a choice may be made that the people don’t agree with. The people may then struggle and start protesting. Furthermore, this could lead to the collapse of a country and its government. An advantage of a command economy is that everyone works toward a common goal....

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