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Characteristics of unplanned economies - Essay Example

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According to Daniels and VanHoose (2014) the main great economic problem is scarcity. It is the insufficiency of finite resources available in satisfying every human need…
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Characteristics of unplanned economies
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Characteristics of unplanned economies

Download file to see previous pages... Market/unplanned economy and command/planned economies occupy the two polar extremes in the economic activity organization. The main difference is found in mechanisms used to determine prices and labor division or production factors. The market economy activity is unplanned, that is, it has no organization from the central authority and gets determined by the goods’ demand and the supply services. On the contrary, the command economy gets organized by the officials of the government who also direct and win the production factors (Meade, 2013).
Currently, all modern economies are mostly pragmatic economies. The economies reject the thought function of representing, describing or mirrorring reality, but instead, they consider it as an instrument, action for problem solving. The two views of confrontation of the modern capitalism; state and neoliberal capitalism, will identify the economy of the social market that creates a new future pragmatism. Therefore, pragmatism is an indispensable and fundamental way of a rational economic management (Daniels & VanHoose, ...Download file to see next pagesRead More
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