week_5_economic_systems_pdf.pdf

Disadvantages 1 this type of society is often very

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Disadvantages: 1. This type of society is often very slow to change. 2. It does not take advantage of technological change. 3. There is relatively little promotion of intellectual and scientific development. 4. There is inefficient provision of goods and services. 5. There is inadequate use of skill in relation to the factors of production. 6. No upward movement of labor takes place.
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Command Economies Features: - government controls all economic activity - government decides what goods are produced, how much of each good to produce and how much the people should get. Examples of this economic systems: - The former Soviet Union (now 15 countries including Russia and Ukraine) dismantled their planned economies from 1990. - China until the 1980s and 1990s - Cuba until the 1990s - North Korea present day
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Advantages and Disadvantages?
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Command Economies Advantages: 1. The welfare of all citizens is the primary goal 2. Full employment of all available resources 3. Government possess the information to be able to direct resources where they are most needed. 4. Wasteful competition is avoided 5. There is no industrial unrest such as striking, as the government controls wages 6. Greater emphasis on quality of life than on quantity produced. Disadvantages: 1. No freedom of choice for consumers or producers 2. System is too rigid to adjust when changes occur, can result in shortages 3. Lack of incentive for workers results in low morale and efficiency. Managers also are not motivated. 4. There are too many officials, and too much unnecessary procedure and paperwork (red-tape or bureaucracy) 5. Conflicts of interests can arise because what the country needs may not be what the people want. 6. There is wastage of manpower because large numbers of people are required for central planning.
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