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.
3)
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....

Find Another Essay On Types of Economies

Varieties of Capitalism Essay

2361 words - 9 pages relations, vocational training and education, corporate governance, inter-firm relations as well as employees, is essential to ensure coordination to maintain competencies (Hall and Soskice, 2001). According to Knell and Srholec (2005), the varieties of capitalism literature has mainly distinguished and identified two types of coordination - Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs), in which competitive markets are

Compare And Contrast Two Alternative Systems Of Resource Allocation In The Economy

1783 words - 7 pages to indicate that perhaps the advantages of the free-market outweigh the disadvantages and that the ‘free-market based’ modern mixed economy is more attractive than command based economies. BIBLIOGRAPHY Beggs, Fischer, Dornbusch (1997) : Economics 5th Edition. R.G.Lipsey (1989) : An Introduction to Positive Economics. C.Weststrate (1963) :Types of Economy. A.Eckstein (1973) : Comparison of Economic Systems.

Economies of Scale

1569 words - 6 pages Economies of Scale Economics Test 1. Define and explain all Internal Economies of Scale: · Internal Economies of Scale:Are reductions in long-run average cost as the size and output of a firm increases. In other words, they are advantages that large firms have because they are large. As they grow larger in the long-run they manage to raise their output faster than the rise in their total costs. The result is lower long-run average

components of human society

1430 words - 6 pages . Negative reciprocity involves very distant trading partners and is characterized by each partner attempting to maximize profit and an expectation of immediate exchange (e.g., market economies, and silent barter between Mbuti foragers and horticulturalist neighbors).D. Coexistence of Exchange Principles1. Most economies are not exclusively characterized by a single mode of reciprocity.2. The United States economy has all three types of

Generalizing Behaviors Among Emotionally Disturbed Students

2014 words - 8 pages intervention, suited for a school environment. According to McIntyre’s research on behavior, (www.BehaviorAdvisor.com, n.d.) one of the most commonly used behavioral management interventions, especially in settings for students of learning or behavioral challenges, is the token economy system. Token economies are often quite effective for students who are resistant to other types of motivational or behavioral management techniques, such as

Comparison and Contrast 19th Century Colonialism and Contemporary Globalization

1304 words - 5 pages Revolution in the 19th century, European colonizers launched colonial expansion in order to seek more resources (Pretini & Berchadsky), not to develop the colonial economies. Thus, it was not uncommon that colonizers forced colonies to trade so as to exploit the local resources. In the 19th century, by insisting on the cultivation of certain types of crops in Africa for colonists’ sake, colonists undermined the economic structures and made indigenous

Does trade couse economic growth?

1780 words - 8 pages The last few decades have been characterised by an unprecedented expansion of trade, which has come to great prominence on the global agenda as one of the most important drivers of economic growth. The effects of trade on economic performance have been the centre of political debates of both rich and developing economies. There are many advocates of trade as a proxy for growth on one side, and sceptics who doubt that trade promote long and

Globalization and Human Welfare

1742 words - 7 pages David Ricardo who introduced the concept of comparative advantage which compares the productiveness across countries. Here countries make use of their natural resources, climate, skills etc. According to Paul Krugman trade reflects arbitrary or temporary advantages resulting from economies of scale or shifting leads in close technological races. Thus comparative advantage can be created through technological innovations. Globalization is

Canadian Branch plant economies

3007 words - 12 pages Modern industrial organizations in Canada are synonymous with the branch plant economy phenomenon. In general, "the term branch plant economy refers to a convenient shorthand term to describe a regional economy where a large proportion of the employees are in establishments owned by firms whose head office lies outside the region" (Watts 1). In Canada, branch plant economies are subsidiaries of companies based abroad, mostly in the U.S.A branch

GLOBALISATION & THE GLOBAL ECONOMY

1176 words - 5 pages •Globalisation the process of increased integration between different economies and the increased impact of intnl influences on economic activity and all areas of life•Global economy the situation where the economies of the world are increasing linked to each other, and changes in one economy have ripple effects on other economiesI) INDICATORS OF GLOBALISATION•Economic integration can be seen inoIntnl trade flows- growing at 2

International Outsourcing. The essay is about the negatives and positive effects of outsourcing.

1903 words - 8 pages IntroductionThere is has been much attention paid to international outsourcing and its effects on western economies in particular the United States. Outsourcing of 'American' jobs was a presidential election issue this past November. There are many contrasting opinions on the subject and this paper will try to clarify some of the hypes and show what the facts really are. Unions and other left wing politicians have been against the idea of

Similar Essays

The Three Different Types Of Economies That Exist In The World

584 words - 2 pages own any item and do what you want with it, as long as you do not disobey a law in doing so. The third one is profit, is the money left from sales after subtracting all the costs of operating the business. The fourth one is competition, the contention among businesses to sell their goods and services to buyers. The fifth one is freedom of choice, the right given to us as buyers to buy what and where we want. Economies are mixed systems because

The Market Of Azerbaijan Republic: A Transition Economy

1389 words - 6 pages analyze and understand these types of markets and economies very well before making larger investment (Johanson and Vahlne, 1977). As mentioned previously special business strategies must be developed in order to survive in unfamiliar business environment of emerging markets and transition economies. In their article, London and Hart (2004) state that companies must be aware of that ‘western style patterns of economic development may not occur in

Why Is The Ability To Exploit Economies Of Scale So Important In Mature Industries?

2009 words - 8 pages constraints.Economies of scale are central to many organisations values.There are a number of reasons why firms are likely to experience economies of scale with some due to increasing returns of scale and some not although most economies of scale can be organised into two types; real and pecuniary economies.Pecuniary economies are achieved through paying less for the materials used in the production and distribution of a product. This can be done through bulk

Globalization Benefits Rich Nations More Then Poor Nations

1319 words - 5 pages growth of global economies, but its impacts have differed between different economies. While the increases in global imports and exports have come as a result of falling protectionist policies, it has advantaged mainly producers of manufactured goods, while producers of primary goods still face international barriers to trade. The consequence of this is the increase in trade between nations that produce different types of manufactured goods, and as a