Compare the difference in economic goals between a traditional, command, and market economy

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Boss

Social Studies

6 October, 19:23

Compare the difference in economic goals between a traditional, command, and market economy

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Shamar Dixon · Answer 1

Market economies utilize private ownership of the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. In reality, all economies blend aspects of the two.

Areli Fox · Answer 2

The traditional, command, and market economies have multiple differences, and they can simply be seen in their basic goals.

The traditional economy has a goal of maintaining the things as they are. It tends to keep the things in a relative status quo situation if they work ok, and it tends to avoid risks as much as possible.

The command economy's main goal is self-sustaining. This economy type is focused on producing and consuming for its own market, just the right amount, not more, not less.

The market economy has its goals on open economic collaboration and trade. Its goal is the goods, ideas, and people to be able to move freely, and to have as much more connections around the world as possible.