ECONOMIC SPECTRUM
Mitch Kubesh
COMMAND ECONOMY
The main characteristics of the command economy is mainly that a centralized group has almighty
power, usually the government.
An advantage of the system is that things get done much quicker because one single group has the
power, so they don't have to get other groups on board to do something when needed, they just do it.
A disadvantage of this system is that it is controlled by one group and doesn't take in the opinions of
the people of the community. It effects them but they don't get a say, no democracy.
If a hurricane were to hit a major city in the country the command economy would be able to move
in and bring help and get people to safety better than both the mixed economy and the free market
economy because they have more incentive and more power to do such things.
The command market economy is used in China which also practices communism which goes hand
in hand with command economy.
MIXED ECONOMY
The main characteristics of the mixed economy is that it is a mix between both the market economies
and the command economies. It is the best of the two combined as an economic transition to
contain both methods.
The advantages of the mixed economy is that it has both the methods of free market economy and
command economy.
The disadvantages of the mixed economy is that it is too far in the middle and has to pick a side on
several topics.
If a hurricane were to hit a major city in the country they wouldn't be able to get the military on
board to help and able to get in there and save lives as fast as the command economy, but not as slow
as the free market economy either.
The mixed economy is used in France which also practices socialism, most mixed economies do
practice socialism.
FREE MARKET ECONOMY
The characteristics of a free market economy is when the decision of investment, production and
distribution are based on supply and demand. Free market ranges from Laissez Faire to regulated
markets like the factor markets.
The advantages of the free market system is that they always have the right amount of household
items and consumer sovereignty. Never too much or too little. The market is always at a good
rate or produce and consume.
The disadvantages of the free market economy is that it doesn't include private property at all and
does not deal with the means of privatization at all.
If a hurricane were to hit a major city in the country the free market economy wouldn't be able to do
much about it for a long period of time. It would be slow and wouldn't save many lives.
The free market economy is used in Singapore which practices part authoritarian which is fairly
common with the free market economy.
SOURCES
http://www.wisegeek.com/what-are-the-characteristics-of-a-command-economy.htm
http://bobbyfinance.com/wp-content/uploads/2013/07/global-economy.jpg
http://fe867b.medialib.glogster.com/media/
41/4131bd54dc0bdb4bf0fdc1185b780215ea4e7820ffff1484f0042db06e397189/economy3gif.gif
http://cdn.romeconomics.com/wp-content/uploads/2013/10/mixed-economy.png?50ff81
http://en.m.wikipedia.org/wiki/Market_economy
http://www.groaction.com/discover/wp-content/uploads/2010/08/free-market-economylaissez-faire1.jpg