Question: Advantages and disadvantages of market economy and

command economy?

Market economy Command economy

Advantages - Is a condition to - Operations are
promote production consistent within a
activities. command economy.
- Having a large -It creates a flexible
production force that industrial sector
meets the maximum -The exact demands of a
needs of consumers. society can be met.
- Helping people -Any resource can work
unleash their creativity. with any other resource
- Provide more jobs for -It offers socioeconomic
everyone. equality for much of the
population.
-Acute demands can be
quickly met.

Disadvantages - Causing social -It is a governmental

inequality. structure that reduces
- It can easily lead to an personal freedoms
imbalance of supply and -It limits innovation.
demand, causing an -It encourages illegal
economic crisis. activities.
- Profit-driven producers -It eliminates the
of goods and services competition.
have ecological -It reduces
consequences that communication.
reduce the country's -It reduces exports.
sustainable growth rate. -It creates incentives
that people don’t see as
an incentives