Command economic system

  In terms of economic advancement, the command economic system is the next step up from a traditional economy. This by no means indicates that it is fairer or an exact improvement; there are many things fundamentally wrong with a command economy.

    Centralized Control: The most notable feature of a command economy is that a large part of the economic system is controlled by a centralized power; often, a federal government. This kind of economy tends to develop when a country finds itself in possession of a very large amount of valuable resource(s). The government then steps in and regulates the resource(s). Often the government will own everything involved in the industrial process, from the equipment to the facilities.

     Supposed Advantages: You can see how this kind of economy would, over time, create unrest among the general population. But there are actually several potential advantages, as long as the government uses intelligent regulations. First of all, a command economy is capable of creating a healthy supply of its own resources and it generally rewards its own people with affordable prices (but because it is ultimately regulated by the government, it is ultimately priced by the government). Still, there is often no shortage of jobs as the government functions similarly to a market economy in that it wants to grow and grow upon its populace.

      Hand In The Cookie Jar: Interestingly – or maybe, predictably – the government in a command economy only desires to control its most valuable resources. Other things, like agriculture, are left to be regulated and run by the people. This is the nature of a command economy and many communist governments fall into this category.

MARKET ECONOMIC SYSTEM

      A market economy is very similar to a free market. The government does not control vital resources, valuable goods or any other major segment of the economy. In this way, organizations run by the people determine how the economy runs, how supply is generated, what demands are necessary, etc.

   Capitalism And Socialism: No truly free market economy exists in the world. For example, while America is a capitalist nation, our government still regulates (or attempts to regulate) fair trade, government programs, moral business, monopolies, etc. etc. The advantage to capitalism is you can have an explosive economy that is very well controlled and relatively safe. This would be contrasted to socialism, in which the government (like a command economy) controls and owns the most profitable and vital industries but allows the rest of the market to operate freely; that is, price is allowed to fluctuate freely based on supply and demand.

    Market Economy And Politics: Arguably the biggest advantage to a market economy (at least, outside of economic benefits) is the separation of the market and the government. This prevents the government from becoming too powerful, too controlling and too similar to the governments of the world that oppress their people while living lavishly on controlled resources. In the same way that separation of church and state has been to vital to America’s social success, so has a separation of market and state been vital to our economic success. Yes, there is something wary about a system which to be successful must foster constant growth, but as a result progress and innovation have occurred at such incredible rates as to affect the way the world economy functions.

USING ADVERTISING WISELY

    Advertising is all around you —on television, the Internet, billboards, and so on. In general, advertising can be classified as competitive or informative. Advertising that attempts to persuade consumers that a product is different from and better than any other is competitive advertising.Companies use it to take customers away from competitors or to keep customers they already have. Informative advertisingaids consumers by providing useful information about a product.

    Some companies use false advertising that misrepresents the quality, features, or true price of goods. A common example of this is bait and switch. The bait is an advertised item at an unrealistically low price. Then, when the consumer gets to the

store, a salesperson points out all the bad features of the advertised item. The  salesperson then shows the customer higher-priced models and points out all their good features—the switch. This practice is both deceptive and illegal.

COMPARISON SHOPPING

     After you have gathered as much information as possible about the make and model of the product you want, you must decide where to buy it. It is generally worthwhile to get information on the types and prices of products available from

different stores or companies. This process is known as comparison shopping.

     To efficiently comparison shop, read newspaper advertisements, make telephone calls, browse the Web, visit different stores, and talk with friends who already have the product. Armed with prices that you have obtained from these

sources, negotiate with local merchants to get them to match (or come close to) the lowest price.

      Comparison shopping can be time-consuming. As with gathering information on a product, the value of your time and effort spent comparison shopping should not be greater than the value you receive from making the best choice of product for yourself. Comparison shopping can be especially useful under certain circumstances, such as when you are buying a very expensive or complex item, or when the quality or price of the product varies greatly.