Broad Social Goals in Command and Market Economies

Today we have learned about what the primary goals of command and market economies are. We read two diaries of teenagers from different economies to compare what their economy’s goals are.

In the Student Diary A, the economy there valued economic equity, security, and stability. On the contrary, the economy in the Student Diary B valued economic freedom, growth, and efficiency.

In sum, there were 6 social goals in economics.

  1. Efficiency
  2. Equity
  3. Freedom
  4. Growth
  5. Security
  6. Stability

371_choose1

We learned that neither of these economies alone can achieve all of the 6 goals. If it was a market economy, it often acheived 1, 3, and 4, but found it hard to achieve 2, 5, and 6. Similarily, planned economy often acheived 2,5, and 6, but failed to achieve 1, 3, and 4.

In summary, there are opportunity costs of choosing between market and planned economy.

Advertisements

4 Responses so far »

  1. 1

    Hugo Cesari said,

    Generally I do not post on blogs, but I would like to say that this post really forced me to do so, Excellent post!

  2. 2

    sanelisiwe said,

    nice one hey!

  3. 3

    sanelisiwe said,

    iam a first year student at the DURBAN UNIVERSITY OF TECHNOLOGY I DID NOT CLEARLY UNDERSTAND THE MEANING OF THE TERMINOLOGY TRADE OFF, BUT I GET IT NOW…..THANK YOU

    • 4

      11kimsa said,

      Good to hear that 🙂 I bet that engineering students will get the most fun out of economics than other science classes 😉


Comment RSS · TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: