Capitalism vs. Command Economy

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Capitalism vs. Command Economy
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A) Capitalism

• 1) capitalism- economic system in which
  production and the means to produce are owned and
  controlled by private owners and groups.

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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

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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

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B) Command Economy

• 1) command economy- an economic system in which
  decisions on the basic economic questions are
  made by the govt

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II) Reasons for a Command Economy (Chinese Govt)
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II) Reasons for a Command Economy (Chinese Govt)

• 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

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II) Reasons for a Command Economy (Chinese Govt)

• 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

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II) Reasons for a Command Economy (Chinese Govt)

• B) Government should control production and
  allocation of resources

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II) Reasons for a Command Economy (Chinese Govt)

• B) Government should control production and
  allocation of resources
• 1. This would be more efficient, lead to less
  waste and little or no unemployment

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II) Reasons for a Command Economy (Chinese Govt)

• C) In capitalism, you generally have very wealthy
  and very poor

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II) Reasons for a Command Economy (Chinese Govt)

• 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