Discussion

Discussion - 1. Discuss the differences between markets and...

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1. Discuss the differences between markets and central planning. Does this issue have anything to do with the demise of the Soviet Union? Explain. A central planning economy that the Soviet Union followed was based on assumptions made from the ideals of Communism. This is another case where the theory is sound, but the system fails to work. The idea behind a central planning economy is one where a central group in this case the government deems what should be produced, how much should be produced, and what price to charge for those items. On the opposite end of the spectrum a market based economy determines production based on the demand for a product or service, long story short if no one wants a product then it will no longer be produced. This is due to a market based economy being consumer driven rather than a planned economy, a planned economy is unable to take into considerations human nature and how a person’s preferences can change. Think of it like a woman that is pregnant; one day she might love something say chicken yet the next day the thought or smell of chicken may cause her to feel nauseous, and her tastes are more towards cantaloupe. If the husband acts like a market based economy he is able to adjust and adapt for
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Discussion - 1. Discuss the differences between markets and...

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