Market Economy Vs Command Economics

1.1 Questions

What is the major difference between a command economy and a market economy?

The major difference between a command economy and a market economy is that command economies are planned. Because of this, business owners have no choice on what to produce. In market economies, individuals are free to decide what they want to produce. The United States is a market economy. There are many differences between a command economy and a market economy, but these are some of the main differences.

Which of the characteristics of a market economy do you believe is the most Important? Explain

The characteristic I believe is most important is profit. Without profit, there is no way to have a successful business. The main reason that most businesses

Why do you think people make careless and uninformed decisions?

I think people make careless and uninformed decisions because people like to follow the crowd. For example, if people on your street suddenly are buying new cars, you are going to want to buy a new car too, even if it is nowhere in your budget. Also, when a new piece of technology comes out, everyone wants it. But, they have no clue if it is reliable or not; the public wants it because it is what is new. Careless and uninformed decisions will only cause more problems in the future.

6. Once you do make a decision, what kind of attitude should you have regarding that decision?

Once a decision is made, you should have an optimistic attitude. If you buy a new phone, and it is not something you like at first, it may just take a while to get used to it. It may turn out that this new phone may be the best phone that you have ever bought, it or may turn out to be something you dislike after you have had it for a while. This is where part 6 of the decision making process comes into play. Positive attitudes are required in any aspect, especially when decision making.

1.3 Questions

1. Give a brief description of the three ways to measure the health of an

What part of the business cycle do you think we are in today? Explain in terms of all three economic measures.

Currently, I think we are in prosperity. Consumer spending is high, and so is business spending. Government spending is always going to be high for the most part, even though we are trillions of dollars in debt. A recession will be coming in a couple years, if predicted correctly. Therefore, I think we are in prosperity.

1.4 Questions

1. Compare and contrast standard of living and quality of life. As a business owner, which one would be more important?

The standard of living and quality of life are similar because they both define how you live life. But, the standard of living is the way you live. The quality of life is the satisfaction and enjoyment you get out of making decisions. As a business owner, the standard of living would be more important because this is the category in which consumers buy the items they want, making the business owner able to profit from such purchases.

2. Why is it important for business and consumers to understand how supply and demand affect the