Today we are going to examine two economies that have developed throughout the globe, they are commend and market economies, there are pros and cons for each. Let's look at the commend economy first. The foundation of it is that is directly controlled by the centralized government. Now just think about the clothing for example. This will real surprise those of you who love to shop and must have the latest fashion. A commend economy means that the government is involved in every step, they are responsible for designing the clothes, choosing the material, how many of each to make, where will to be manufactured, the purchase price, the wages to paid the workers and etc. That's quite a large responsibility to give to someone who has no idea about how different people are shaved. Really, you don't probably look at those you were wear in sex or something. Now, as well as the design for us, there are other downsides to commend economy. Even if it works possible to produce something that everyone would want to wear, there are other things that could go wrong. After in factory don't quote as, needs are underestimated, and products could sell too quickly and so on. There are the main reasons. Basically, things have to be adjusted. Products and prices might have to be increased or decreased. There might be restrictions on the number of items of person could buy and etc. Now, let's look at the market economy. That means provide and price is the government not making the decisions, cuz how it works. We use the same example of clothing. Maybe somebody, say Jack, decides to open a company making clothes. He designs and makes some fashionable, so people would want to buy and wear them. If the clothes become popular ,then Jack can increase the price and keep increasing it. By doing this, Jack can make more profits and or expand business to make even more money.
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