Comparing Command And Market Economies

There are many differences between a command and market economy. First, the market economy has more choices for business. Second, a command is run by the government, and the people have little say. Last, a market economy is more successful than a command economy, since countries like North Korea and Cuba have command economies. In all, command and market economies are very different.

I believe profit is the most important characteristic of a market economy. First, you have to pay for rent, so profit will cover it. Second, you need profit to pay for workers and supplies. Finally, you need profit to get personal money. All characteristics of a market economy are important, but profit trumps all.

Market economies have been adopted in many countries

First, you can look at the GDP, or total dollar value of goods and services. Second, you can look at the labor productivity, or units produced per hours worked. Lastly, you can look at the inflation and deflation, or the price for goods and services. The healthier the economy, the more successful a country will be.

There are four different business cycles. The first one is prosperity, where production, wages, and demands are all good. Recession, where the health measurements lower. Depression, where the economy is at an all-time low. Finally there is recovery, where the economy is restoring to mediocre measurements. All cycles revolve around each other, making a long, endless chain.

As a business owner, GDP would be very important. GDP is the total dollar value of all goods and services. This means that if a business had a high GDP, then it would have high profit. One factor of GDP is business spending, so cutting down on unnecessary purchases could really help a business. Good GDP makes a healthy and effective

This is because many products that are made help make consumers lives easier and more comfortable. The standard of living is already up to par, so a business would be better suited to specialize in helping better the quality of life. Also, standard of life can be measured with statistics such as income, but quality of life is more of an opinion. A person can be happy living in a log cabin, while another can be unhappy living in a mansion. Quality of life can never stop improving.

It is important for the consumer and business to understand supply and demand. A simple principle of supply and demand is that the more demand and less supply means that the product is worth more. If a consumer didn’t understand supply and demand, then they would buy an overpriced product, and sell an underpriced one. Same goes with the business, where they don’t want to sell a product too low or too high, they want to adjust as the supply and demand does. Businesses that fail most likely weren’t educated on supply and