In a command economy, the following events would be more common than in a market economy:
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People with lower incomes have the same goods as people with higher incomes.
- In a command economy, the government often controls the distribution of goods to ensure that everyone has access to the same basic necessities, regardless of income.
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People wait in long lines for cheap goods.
- Command economies often set prices for goods and may not respond to supply and demand effectively, leading to shortages and long lines for essential products at controlled prices.
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Young college graduates have difficulties finding jobs.
- Job creation may not align with the number of graduates entering the workforce, particularly if the government plans do not account for market needs or trends.
The following events are less common in a command economy:
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New businesses are started to fill society’s unmet needs.
- In a command economy, the government typically controls business operations and discourages entrepreneurship.
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A great deal of food in a market is thrown out because people wait in long lines for cheap goods.
- This scenario is more reflective of inefficiencies that occur due to price controls and shortages in a command system, but it is not a defining characteristic.
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Companies develop new and useful technologies.
- Innovation typically flourishes in a market economy where competition drives companies to improve their products and services.
In summary, the events that would be more common in a command economy are:
- People with lower incomes have the same goods as people with higher incomes.
- People wait in long lines for cheap goods.
- Young college graduates have difficulties finding jobs.