Command Economy

A market system is an economic system where individuals own most economic resources and markets and prices serve as the dominant coordinating mechanism used to allocate those resources. This is also known as capitalism or an unplanned economy. A market system is not organized by the government, but is instead determined by the supply and demand of goods and services. This means that there are voluntary exchanges and private ownership of means of production.

A command economy is an economic system where property resources are publicly owned and government uses central economic planning to direct economic activities. This is also known as socialism or a planned economy. In this economic system decision-making is centralized, so the government

Some resources are renewable, but land is typically limited or fixed. It must be used carefully to create a mix of natural and industrial uses. If there is no industrial use, then the natural resources will not be turned into goods efficiently and the production process will not be improved. If they run out of land to use, there will be a shortage and will not be able to provide a place to manufacture a good or service. Labor is any mental or physical work from a human that is used in the production of a good or service and is flexible. Workers can be distributed to different areas of the economy to produce goods or services. Workers can also improve from training to complete different functions when working with other economic resources. On one hand, if there is a scarcity of labor, it could encourage technological advances, unless labor and technology are complementary. However, with the growing population, there will most likely not be a scarcity of

This could include providing a strategy, advancing innovation, and gathering and distributing resources or products to businesses in the economy. Theoretically, if there is no one to organize production, nothing can be distributed.

Opportunity cost is the amount of one product that must be given up to produce a unit of another product. It is part of any decision that involves a tradeoff between two or more options. These opportunity costs will exist as long as resource scarcity exists. We only have so much income, supplies, and utility to the point where we cannot have everything we want. There must be an alternative. The value of the alternative should be considered when choosing production methods, the cost of capital, analyzing comparative advantages, and even choosing which product to buy or how to spend