2-Capitalism-vs.-Command-Economy

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Capitalism vs. Command
Economy
A) Capitalism

1) capitalism- economic system in which
production and the means to produce are
owned and controlled by private owners and
groups.
A) Capitalism

1) capitalism- economic system in which
production and the means to produce are
owned and controlled by private owners and
groups.

a. government plays a limited role
A) Capitalism

1) capitalism- economic system in which
production and the means to produce are
owned and controlled by private owners and
groups.
a. government plays a limited role
 b. market determines how resources are
distributed

B) Command Economy

1) command economy- an economic
system in which decisions on the basic
economic questions are made by the gov’t
II) Reasons for a Command
Economy (Chinese Gov’t)
II) Reasons for a Command
Economy (Chinese Gov’t)

A) In a capitalistic economy, people will
make things that make them the richest and
not be able to meet all of the needs of the
people
II) Reasons for a Command
Economy (Chinese Gov’t)

A) In a capitalistic economy, people will
make things that make them the richest and
not be able to meet all of the needs of the
people

1. Make goods for the rich, and not for the poor
II) Reasons for a Command
Economy (Chinese Gov’t)

B) Government should control production
and allocation of resources
II) Reasons for a Command
Economy (Chinese Gov’t)

B) Government should control production
and allocation of resources

1. This would be more efficient, lead to less
waste and little or no unemployment
II) Reasons for a Command
Economy (Chinese Gov’t)

C) In capitalism, you generally have very
wealthy and very poor
II) Reasons for a Command
Economy (Chinese Gov’t)

C) In capitalism, you generally have very
wealthy and very poor

1. Because command is not concerned with
profit, resources are distributed equally and
there is a more level economic standing
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