Command Economy And Capitalism

1 .1 Advantage of a Command EconomyA command economy can make the most of the continuous operation of the estate s sparing re citations . Proponents of this frugal method cont closing cerement that the limitation of a business cycle does not sustain to planned economies . This thusly enhances stability in the country by controlling unemployment and former(a) undesirable economic variables (Wkipedia 20071 .2 Drawback of a Command EconomyDue to the spirited centralisation that exists in a command economy , workers depart from behind be less prone to innovation and growthivity . Since the innovate of this economic style rests upon societal rather than individual call for the course of work to rule may arise in prevalent firms (Wkipedia 20071 .3 Advantage of a capitalist EconomyAn important singularity of a capitali st economy is that of unrestricted access to markets , which increases gibe . through and through a large number of sellers , economic power is easy between entrepreneurs and the invisible hand denoted by Adam smith will direct to an equilibrium monetary quantify . Such characteristics will lead to greater product extract for clients and improved product quality and reasonable price . In to meet such criteria , competiting firms will thus promote cleverness and effectiveness to hold up in the market (Maunder. et al 1993 ,24 -261 .

4 Limitation of a Capitalist EconomyProminent leftist critics give care Karl Marx state that due to high competition in a capitalist economy , entrepr eneurs will continually strive to lessen op! erating costs , sometimes by tar dieing advertize costs Since labor is the most basic source of value for an economy , the entrepreneurs through such measures argon withdraw their ingest grave . This is due to the fact that if people are inactive , they will not have sufficient money to deal commodities that firms are selling . Therefore industrialists will end up bankrupt in the long-run due to scorn deal resulting in a limited number of companies in the application (Maunderbr et al 1993 ,36ReferencesMaundersMyers D Wall N milling mold L . R (1993 . Economics Explained . Second Edition . Glasgow : harpist Collins PublishersWikipedia (2007 . Planned Economy . Available from http /en .wikipedia .org /wiki /Command_economy (Accessed sixth May 2007PAGEPAGE 2 of 2COMMAND AND CAPITALIST ECONOMIES...If you want to get a full essay, order it on our website: OrderEssay.net

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