Government intervention into economics is most easily seen in a command economy. In a command economy, most of the nation's economic system is controlled by the government. In a command economy, it is not uncommon for the government to plan the economy and control production, price, and distribution. The Soviet Union would be a good, historical example of a command economy.
In a true free market economy, there would not be any government intervention. This is the idea of "laissez-faire", in which the government stays out of economics. In this economic theory, the economic system should self-regulate. Government does not regulate what is produced, how much is produced, price of goods, or distribution. Countries with capitalist economic systems, such as the United States, can be considered closest to a true free market economy; however, there is no country that has an entirely true free market. For example, in the United States the government places restrictions on monopolies and creates minimum wage laws, among other things.
Traditional economies are different from the other economies that we have examined. Traditional economies tend to be found in rural communities of developing nations. Traditional economies rely on a barter system of trading and are often based around agriculture. In a traditional economy, it is usually the case that economic decisions are based around societal needs. The needs of a society, and thus the economic decisions, may be made by tribal leaders or elders. The tribal leaders, in this case, can constitute a form of government within these societies.
https://www.thebalance.com/traditional-economy-definition-examples-pros-cons-3305587
Friday, June 29, 2018
What are examples of government intervention in traditional, free market, and command economic systems?
Subscribe to:
Post Comments (Atom)
What is the theme of the chapter Lead?
Primo Levi's complex probing of the Holocaust, including his survival of Auschwitz and pre- and post-war life, is organized around indiv...
-
Bacteria are single-celled microorganisms that thrive in diverse environments (such as the ocean, the soil, and the human body). Various bac...
-
The statement "Development policy needs to be about poor people, not just poor countries," carries a lot of baggage. Let's dis...
-
Note that these events are not in chronological order. The story is told by the narrator, looking back upon her life. The first notable even...
-
It seems most likely you are asking about Michael Halliday's theories of language. He argues children have seven main functions they use...
-
Under common law, any hotel, inn, or other hospitality establishment has a duty to exercise "reasonable care" for the safety an...
-
The tension between the three world orders after World War II (1939–1945) manifested itself in territorial, economic, military, ideologic...
-
James is very unhappy on a number of occasions throughout the story, but he's especially unhappy with his life situation as the story be...
No comments:
Post a Comment