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Command Economies

ivana-calhoun avatar
ivana-calhoun
10 diapositives · 290 Views · Nov 20, 2014

Command Economies. Command Economies. In a COMMAND ECONOMY the government controls the factors of production and makes all decisions about their use. Command Economy. The government answers the 3 basic economic questions.

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Command Economies
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  1. Command Economies

  2. Command Economies • In a COMMAND ECONOMY the government controls the factors of production and makes all decisions about their use.

  3. Command Economy • The government answers the 3 basic economic questions. • What? A dictator or a central planning committee decides what products are needed based on what they believe is important. • How? Since the government owns all means of production in a command economy, it decides how goods and services will be produced. The government employs all workers and controls all employment opportunities and benefits.

  4. Command Economy • For Whom? The government decides who will get what is produced in a command economy. Wealth is shared equally, to ensure everyone’s basic needs are met. The government provides housing, food, medical care, education, and jobs. • There is much security in this system.

  5. Socialism • In a SOCIALIST political system, there is increased government involvement. • The main goal is to keep prices low for all people and to provide employment for many. • The government runs key industries: • Telecommunications • Mining • Transportation • Banking

  6. Socialism • More social services are given • Free or low cost medical care • Education – Elementary through College • People pay higher taxes • A democratic political system, only with an increased amount of government involvement. • Country examples: Canada, Germany, Great Britain, Sweden, and Australia

  7. Communism • COMMUNIST countries have a totalitarian form of government. • This means that the government runs everything and makes all decisions. • Theoretically, there is no unemployment. • People are assigned jobs • Told what kind of schooling they will receive • Told where to live

  8. Communism • Free medical • Help with food and housing • The Communist party is in charge. • Country examples: Cuba, North Korea, and China

  9. Mixed Economies • All economies in the world today are mixed. • There is some government involvement in each economy. • Depending on how much the government is involved is what kind of economy that country has.

  10. Continuum of Economic Systems Capitalism Socialism Communism