Capitalism vs Command Economy A Capitalism n 1

Capitalism vs. Command Economy

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

A) Capitalism n 1) capitalism- economic system in which production and the means to produce are owned and controlled by private owners and groups. n a. government plays a limited role

A) Capitalism n 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 n b. market determines how resources are distributed n

B) Command Economy n 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) n 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) n 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 n 1. Make goods for the rich, and not for the poor

II) Reasons for a Command Economy (Chinese Gov’t) n B) Government should control production and allocation of resources

II) Reasons for a Command Economy (Chinese Gov’t) n B) Government should control production and allocation of resources n 1. This would be more efficient, lead to less waste and little or no unemployment

II) Reasons for a Command Economy (Chinese Gov’t) n C) In capitalism, you generally have very wealthy and very poor

II) Reasons for a Command Economy (Chinese Gov’t) n C) In capitalism, you generally have very wealthy and very poor n 1. Because command is not concerned with profit, resources are distributed equally and there is a more level economic standing