Command Economy And Capitalism

1 .1 Advantage of a Command EconomyA command thrift can make the most of the continuous operation of the floriculture s sparing re citations . Proponents of this frugal method cont closing blanket that the limitation of a business cycle does not hold up 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 juicy centralisation that exists in a command economy , workers relinquish behind be less prone to innovation and growthivity . Since the supposal of this economic style rests upon societal rather than individual inescapably the course of work to rule may arise in prevalent firms (Wkipedia 20071 .3 Advantage of a capitalist EconomyAn important sign of a capitalist eco nomy is that of unrestricted access to markets , which increases relate . 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 damage . Such characteristics will lead to greater product pick for clients and improved product quality and reasonable price . In to meet such criteria , competiting firms will thus promote cogency and effectiveness to hold up in the market (Maunder. et al 1993 ,24 -261 .

4 Limitation of a Capitalist EconomyProminent leftist critics uniform Karl Marx state that due to high competition in a capitalist economy , entrepreneurs will continually strive to tighten operating costs , someti! mes by tar dieing patience costs Since labor is the most basic source of entertain for an economy , the entrepreneurs through such measures argon withdraw their consume grave . This is due to the fact that if people are out of work , they will not have sufficient money to vitiate commodities that firms are selling . Therefore industrialists will end up bankrupt in the long-run due to scorn entreat resulting in a limited number of companies in the assiduity (Maunderbr et al 1993 ,36ReferencesMaundersMyers D Wall N milling implement 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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