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11 September, 05:26

What are some ways that a command economy can affect a worker's life?

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  1. 11 September, 06:18
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    The government controls pay so that means less money for workers and more for the government.
  2. 11 September, 07:49
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    Command Economies are typically bad when it comes to a person wanting to make a profit. They focus around (typically) economic equality and lack economic efficiency. Generally speaking, in a command economy, resources are allocated by a Central Planning Committee. This generally will lead to several shortages and/or surpluses in products since the demand/supply can be spontaneous.

    Command=Bad

    Market Economies are focused around making a profit and Economic Efficiency. Basically, people will be rewarded based on how well resources are allocated among the public. For example, take a parking lot like downtown. Generally in a Market economy, we focus on placing as many cars in the lot as possible and using the space to its full potential. However, in a Command, many in these economies will try to allocate the space so that (strictly for example) 3 small, 3 large, and 3 medium vehicles are parked - thus economic equality.

    Finally, with a market economy, there tends to be less shortages and less surpluses, since we operate through the Laws of Supply and Demand in which an equilibrium price will be automatically established through buying and selling

    Market=Good
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