ECONOMICS QUESTIONS.?
1) Recognizing the importance of private ownership of resources, competition, self-interest, etc. embodied in the market system, explain the demise of the command system.
2) Based on the fact that in a command system, the government owns most property resources, while in a market system that is characterized by the private ownership, use the United States and the Soviet Union as an example, and answer the government’s role under the two different economic systems.
3) List two countries that currently still largely rely on the command system, and another two countries/economies used to adopt the command systems.
4) Explain the importance of private ownership of resources in the market system.
Answers
Zirp
This is newspeak-propaganda 101. The theory is that "the market" is more flexible than planned production. the reality is that many things can be planned centrally quite well, that multinational corporations do so, and that the market is susceptible to the "pork-cycle" (boom-and-bust-cycle). the planning in the warsaw-pact simply wasn't very good - they sometimes built aluminium-factories without having any aluminium-ore for instance. good examples of planned economy include dairy in canada, where "evil" government makes sure there is no significant overproduction and dairy-farmers have an income they can live off.
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