In a command economy, the government makes decisions about production, investment, prices, and incomes, while in a market economy, these decisions are largely determined by supply and demand. Here are some events that would be more common in a command economy than in a market economy:
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Central Planning of Production: The government determines what goods will be produced, how much will be produced, and how resources will be allocated.
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Price Controls: The government often sets prices for goods and services rather than allowing them to be determined by market forces.
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Resource Allocation based on National Goals: Resources may be allocated based on goals set by the government, such as increasing military production or housing for the population, rather than consumer demand.
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Limited Consumer Choice: The variety of goods and services available to consumers is often more restricted, as production is based on a centralized plan rather than consumer preferences.
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Government Ownership of Resources: Most, if not all, means of production are owned by the state, leading to a lack of private enterprise and competition.
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Emphasis on Collective Goals: There is often a focus on collective well-being and state goals over individual profit or competition, leading to initiatives that prioritize community or national objectives.
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Bureaucratic Allocation of Jobs: Employment decisions and job assignments may be made by government officials based on the needs of the economy rather than individual choice or market needs.
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Quotas for Production: Production targets are often set in advance for industries and enterprises to meet, regardless of market demand.
These events highlight the differences in how economies function based on the underlying principles of central planning versus market-driven forces.