Question Compare & contrast a market economy and a planned economy in terms of the following; provision of public goods, production and consumption of merit and demerit goods, consumer sovereignty and equity in income distribution. (30marks). A market economy is an economic system where the factors of production, are privately owned, consumers and producers are motivated by self interest, the level of competition in the markets is very high and resources are allocated through the price mechanism
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Types of Economic Systems. Socialism Socialist economic systems (all of which feature common ownership of the means of production) can be subdivided by their coordinating mechanism (planning and markets) into planned socialist and market socialist systems. Additionally, socialism can be divided based on the ownership of the means of production into those that are based on public ownership, worker or consumer cooperatives and common ownership (i.e., non-ownership). Communism is a hypothetical stage
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Socialism Vs. Capitalism & Everything In-Between. We have all grown up seeing that we live in a world that divides our planet into territories. These territories are bordered by imaginary lines that divide us from them. The borders in which we live play a major role in developing each of our identities, our customs or traditions, the way we conduct ourselves in business and personal endeavors. Some of us have grown up with an expectation of freedom to choose, while others depend on their government
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Diversification Vertical Integration Takeover Entry into new business segments Disinvestments Role of headquarter Competitive strategy Product strategy Advertising measures Price strategy Make of buy Innovation strategy Building up market entry barriers Usage of economies of scale Building up alliances Competitive advantages 1. Company 2. Competitor 3. Customer Unique Selling Proposition The unique feature of a product, which enables to have a competitive advantage over other providers. The marketing
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Commanding the Heights: the Battle of Ideas This essay starts with an introduction of the documentary Commanding the Heights: the Battle of Ideas made by PBS, then conducts the analysis on the two competing economic ideas of Keyes vs. Hayek, and finally presents a detailed illustration of their impacts on the America’s economic policies since 1980. Introduction The PBS-made documentary ‘Commanding the Heights’ is to promote better understanding of globalization, economic development and world
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|Socialism | |Philosophy |From each according to his ability, to each according to |From each according to his ability, to each according to| | |his needs. Free-access to the articles of consumption is |his contribution. Emphasis on profit being distributed | | |made possible by advances in technology that allow for |among the society or workforce to complement individual | |
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objectives Vs Stakeholders objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3.0 The nature of national environment in which businesses operates . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.1 Distinctions between Planned, Free market and mixed economic models with examples . . . . . . 6 3.2 Use of Monetary and fiscal policy in management of economy . . . . . . . . . . . . . . . . . . . . . . . . . 7 4.0 The behavior of organizations in their market environment
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system? 2 10/27/2015 Types of Economic Systems 1. Market Economy In pure market economy, all productive activities are privately owned , as opposed to being owned by the state. Price and production are determined by the interaction of demand and supply. 2. Command Economy or Planned Economy In pure command economy, all productive activities are state owned , as opposed to being owned by the individual. In pure command economy, the government plans the goods and services that a country
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explained. Hayek is the best-known advocate of Austrian Economics. This writing focuses on the idea that the market is a spontaneous order. The belief that the free market was not designed by anyone, but evolves slowly as a result of human actions. It is stressed that the market is imperfect, and reasons for this imperfection are given. The question Hayek asked was “What causes the market to fail to fail to coordinate people’s plans, so that at times large numbers of people are unemployed?” One explanation
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Scarcity A situation in which human wants are greater than the capacity of available resources to provide those wants. 3 Parts: 1. People want it 2. There is a limited amount of it 3. It has more than one productive use Scarcity Scarcity vs. Abundance – people see many signs of abundance (e.g. cell phones, iPods) and also see resources wasted daily (e.g. water and food). However, as long as resources are limited and people’s wants are unlimited, scarcity (in the economic sense)
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