RESEARCH PAPER

Question 1

https://keydifferences.com/difference-between-market-economy-and-command-economy.html

Answer 1

1. a market economy, economic activities are not planned, they take place as per the interaction of economic agents
2. command economy government has full control over the economic activities.
3. COMPARISON CHART
4. KEY DIFFERENCES

Question 2

https://opinionfront.com/command-economy-vs-free-market-economy

Answer 2

1. The state of the economy of any nation is determined by the decisions taken by the government.
2. And the degree of regulation and control the government has on the economy determines whether the economy can be termed as a command economy or free-market economy.
3. There is no country in the world which has a hundred percent free-market economy. Some degree of government intervention always exists in any economy. According to a recent survey, in 2014, Hong Kong boasts of the highest level of economic freedom of 90.1%.
4. COMPARE/CONTRAST CHART
5. Countries with higher capitalism have shown a higher GDP (Gross Domestic Product),
6. However, certain economies, such as China, have a high level of government control, but have a high GDP as well. Well, it is still a point of debate between the economists over deciding which is the better one. Famous philosopher and economist, Karl Marx, in his book, Das Kapital, mentions the evil effects of over capitalization. In his opinion, it has mechanized humans.

Question 3

https://byjus.com/commerce/difference-between-market-economy-and-command-economy/

Answer 3

1. In the command economy, the public authority settles on choices on the creation and controls the cost to keep up with correspondence in the public eye
2. In the market economy, the purchaser or dealer settles on creation. The merchandise will be fixed at the most extreme value that buyers can bear.

Question 4

https://www.savemyexams.com/a-level/economics-a/edexcel/17/revision-notes/1-introduction-to-markets–market-failure/1-1-nature-of-economics/1-1-6-free-market-economies-mixed-economy-and-command-economy/

Answer 4

1. DISTINCTIONS BETWEEN ECONOMIES
2. PROS/CONS of ECONOMIES

Question 5

https://www.investopedia.com/ask/answers/040915/what-are-some-examples-free-market-economies.asp

Answer 5

1. Most countries’ economies contain elements of both free market and command economies.
2. For example, although the United States allows companies to set prices and workers to negotiate wages, the government establishes parameters such as minimum wages and antitrust laws that must be followed. The U.S. government furthermore has several regulatory bodies such as the FDA, EPA, FCC, and SEC that can intervene in firms or markets
3. there are a total of 88 countries that score as “mostly free” to “moderately free” market economies.
4. The problem with free markets, however, is that they can lead to inequalities, especially when there are information asymmetries.
5. Based on the Heritage Foundation’s 2022 Index of Economic Freedom, as of Jun. 2, 2022, Singapore, with its extremely low tax rates, minimal regulations on businesses, and highly capitalist system of economics, ranks first, being 84.4.% economically free.
6. Switzerland ranks a close second at 84.2% free, followed by Ireland at 82.0%

Question 6

https://worldpopulationreview.com/country-rankings/command-economy-countries

Answer 6

1. Command economies are a feature of Communist nations. Nations that have this type of economy include:

Belarus
Cuba
Iran
Libya
North Korea
Russia

Question 7

https://www.investopedia.com/terms/c/command-economy.asp

Answer 7

1. The command economy, also known as a planned economy, requires that a nation’s central government own and control the means of production.
2. Arguments Against Command Economies:
   *The Incentive Problem
   *The Information Vacuum
3. Arguments in Favor of Command Economies
   *allocate resources to maximize social welfare, unlike in free-market economies, where this goal is secondary to maximizing private profit.
   *better control of employment levels than free-market economies. They can create jobs to put people to work when necessary, even in the absence of a legitimate need.
   *better able to take decisive, coordinated action in the face of a national emergency or crisis such as a war or natural disaster

Question 8

https://historyplex.com/famous-economists

Answer 8

1. Adam Smith– the world’s first free-market capitalist, for he explained how―in a free-market economy―rational self-interest led to economic well-being.
2. Friedrich Hayek– an Austrian-born economist and philosopher, best known for his support of classical liberalism and free-market capitalism
3. Jean-Baptiste Say– was in favor of competition, free trade, and lifting restraints on business.