A Comparison of Command Economies and Market Economies

CHARACTERISTIC	COMMAND ECONOMY	MARKET ECONOMY
ownership of resources:	government ownership	private ownership
decision making:	centrally planned	by the market
motivation:	"social good"	self interest and profit
prices and wages:	set by the government often distorted	set by the market change with market
result:	inefficiency full employment low inflation low standard of living shortages more equal distrib.	economic efficiency periods of unemploy. periods of inflation high standard of living wide range available less equal distrib.
problems:	corruption=self interest lack of incentives distorted prices inefficiency	monopoly= inefficiency inequality changing prices instability (UE, IN) pollution
OVERALL:	LESS FOR MORE (INEFFICIENT)	MORE FOR LESS (EFFICIENT)