Economic and Social Goals
By Keviana Poole and Jamie Draughn
- Market Economy- Economy based on private ownership and the determination of prices by supply and demand
Advantages- Friendly competition
Disadvantage-Investment priorities and wealth becomes distorted
- Command Economy-Economy in which the government makes all economic decision
Advantages: Monopolizing is not allowed
Disadvantages: Freedom is restricted
- Mixed Economy-and economic system combining private and public enterprise Example-Sweden
Advantages:State provides essential services
Compare and Contrast of the Economies
In a command economy, the government determines how the three basic economic questions (what to make, how to make it, who to make it for) will be answered. So, economic planning is done by the government.
By contrast, in a traditional economy, the questions are answered by tradition -- people do things the way they always have. So people make what their parents made and make them in the same ways.
A third kind of economy is a market economy where consumers decide (through their buying choices) how the three questions will be answered. So what consumers want gets made and it gets made in the way that consumers want
A mixed economy permits private participation in production, which in return allows healthy competition that can result in profit.
economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.
decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.
Ratings on Economic Goals 🌟🌟🌟🌟🌟
2.Economic Efficiency=3.5; because we are not efficient in all areas
3. Economic Equity=4;the u.s. make laws to make sure there is equal treatment
4.Economic Security=5;many government programs keep citizens secure of their home and money.