Free Market Economics vs. Command Economies

Imagine a country where the goods and services that ar produced atomic number 18 based on the market. The market decides who gets them and how the parsimoniousness grows. This is called a destitute Market which is also known as Capitalism. In capitalistic countries citizens throw away sole ownership of their land or businesses. Profit is the motivating grammatical constituent in this economy. The citizens are more willing to work due to the store of profits from their businesses. Corporations are able to issue bonuses and rewards for those with high productivity. Businesses can strand themselves or trade with other nations for more profit.There is limited presidency input in a free market economy. Businesses compete with severally other giving the consumer a wide variety of goods and services at a low competitive price. The market is determined by lend and demand. The citizens in a free market shake up the ability to prefer officials into office that they feel would make a difference. They have freedom of speech, pietism and press. They have the rights that were governed by the United States Constitution. In a command economy the governing decides the goods and services that are produced, who gets them and how it will affect the economy.Socialism and collectivism are both variations of this economy. Socialism is a medium between a free market and a communism economy. The major businesses are possess by the public while small businesses are still private. In this economy the Government will control health care, education, media and transportation. The private have companies can still motivate their workers by providing monetary incentives and are create by profit. The public companies however are monitored by the organisation and therefore have limited incentives.Trading with nations in the socialistic economy has a lot of restrictions. The government even controls who goes to college. A communist economy the government controls almost ever aspect of the market and civilian freedoms. All businesses are publically owned. The markets are controlled by the government fully and there is really little choice for consumers. Citizens do not have freedom of speech, religion, and press. The 2 economies are completely different from each other. Either the government has the reigns in a command economy or the people do in the free market.North Korea is an example of a communist country. The people have really little rights and the government makes all the decisions. The United States is an example of a free market economy, were the people control the market and their choices, the government has very little input. Lastly Sweden is an example of a socialist country were the government has more input then the people, but the citizens still have close to choice. Nickels, W. , McHugh, J. , & Mchugh, S. (2010). Understanding Business. (9th ed) Avenue of Americas, New York The Mcgraw-Hill Companies, Inc.