economics comparison of economic systems. free market command economy philosopheradam smith the...
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Economics
Economics
Comparison of Economic Systems
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea
Who owns the factors of production and makes decisions?
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Responds quickly to changing conditions, produces what is wanted.
Bureaucratic decision making takes time, lacks flexibility.
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Responds quickly to changing conditions, produces what is wanted.
Bureaucratic decision making takes time, lacks flexibility.
Highest degree of any system Government makes all decisions,Consumers lack say in all decisions
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Responds quickly to changing conditions, produces what is wanted.
Bureaucratic decision making takes time, lacks flexibility.
Highest degree of any system Government makes all decisions,Consumers lack say in all decisions
No “safety net” Government provides basic needs
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Responds quickly to changing conditions, produces what is wanted.
Bureaucratic decision making takes time, lacks flexibility.
Highest degree of any system Government makes all decisions,Consumers lack say in all decisions
No “safety net” Government provides basic needs
Self-interest Distribute wealth evenly throughout society.
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Responds quickly to changing conditions, produces what is wanted.
Bureaucratic decision making takes time, lacks flexibility.
Highest degree of any system Government makes all decisions,Consumers lack say in all decisions
No “safety net” Government provides basic needs
Self-interest Distribute wealth evenly throughout society.
Encourages entrepreneurs to seek new ideas and innovations.
Does not reward innovation and actively discourages change.
Political System
Free Market Command Economy
Philosopher Adam SmithThe Wealth of Nations
Karl MarxThe Communist Manifesto & Das Kapital
Basic Idea Markets exist because no one is self-sufficient. People have to specialize which creates a need for markets so people can sell and buy what they want and need.
The central government is in command of the economy, making decisions about what to produce, how to produce it, and who gets to consume it.
Who owns the factors of production and makes decisions?
Individuals The Central Government
Economic Efficiency
Economic Freedom
Economic Security and Predictability
Economic Equality
Economic Growth and Innovation
Responds quickly to changing conditions, produces what is wanted.
Bureaucratic decision making takes time, lacks flexibility.
Highest degree of any system Government makes all decisions,Consumers lack say in all decisions
No “safety net” Government provides basic needs
Self-interest Distribute wealth evenly throughout society.
Encourages entrepreneurs to seek new ideas and innovations.
Does not reward innovation and actively discourages change.
Political System Usually associated with a democracy Usually associated with communism
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