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.
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.