What Advantage And Disadvantages Did Russians Experience With A Command Economy
Command economy is defined in the textbook as, a government run economy. The government owned all industries and set quotas that favored heavy industry over the production of consumer goods and products. What advantages and disadvantages did Russians experience with a command economy? How about a market economy? One of the many disadvantages of this command economy was that supply and demand did not dictate what products would be produced. The authoritative government would determine what was to be produced and how many were needed. There was no freedom as to what was made or sold. One advantage of this economy was that government kept providing jobs due to its many investments. Now on to the market economy, what is a market economy? A market
economy is a better solution because it is considered free competition and things such as pricing are determined by supply and demand. An advantage to having supply and demand is consumers have a choice of which products to buy. A disadvantage to this due to supply and demand would be raising prices in order to make more of the same products at a quick pace such as the way they do in the command economy.
What characteristics of a market economy have contributed to the divide between the rich and poor? The biggest characteristic, as mentioned above is freedom with what to produce. Many can choose what to buy. Economic inequality is a huge issue. It divides the rich and poor. The supply and demand works in favor of the rich, the poor make much less and can’t afford to keep up with the fluctuation of increasing prices in the market economy.
Will conditions for the poor likely improve or get worse as market economic factors become more firmly established in Russia? Why? I believe that the conditions for the poor will most likely continue to get worse as market economies become more established in Russia. Why? The wealthy will always find a way to make money and afford the cost of supply and demand. The poor or middle class families will never be able to keep up with the rising cost of any products that are made through the market economy. Supply and demand will always be a downer for those poor families. For families who can not afford certain things, the conditions will only continue to deteriorate.
economy is a better solution because it is considered free competition and things such as pricing are determined by supply and demand. An advantage to having supply and demand is consumers have a choice of which products to buy. A disadvantage to this due to supply and demand would be raising prices in order to make more of the same products at a quick pace such as the way they do in the command economy.
What characteristics of a market economy have contributed to the divide between the rich and poor? The biggest characteristic, as mentioned above is freedom with what to produce. Many can choose what to buy. Economic inequality is a huge issue. It divides the rich and poor. The supply and demand works in favor of the rich, the poor make much less and can’t afford to keep up with the fluctuation of increasing prices in the market economy.
Will conditions for the poor likely improve or get worse as market economic factors become more firmly established in Russia? Why? I believe that the conditions for the poor will most likely continue to get worse as market economies become more established in Russia. Why? The wealthy will always find a way to make money and afford the cost of supply and demand. The poor or middle class families will never be able to keep up with the rising cost of any products that are made through the market economy. Supply and demand will always be a downer for those poor families. For families who can not afford certain things, the conditions will only continue to deteriorate.