Corporations, Nonprofits, and Labor Unions

Corporations, Nonprofits, and Labor Unions — page 5
Corporations Nonprofits and Labor Unions how both materials and finished finished goods will be distributed distributed Central planners set prices mainly on the basis of how efficiently goods can be produced Past societies with command economies accomplished tremendous achievements For example example the Egyptian pyramids were built under a command command economy At the time the Pyramids of Giza Egypt were built Egypt had a command economy Supporters of command command economies say that government control overcomes market failures creates a more socially equal system and prevents mass unemployment unemployment However this comes at a cost of personal freedom Individuals have little or no choice in what they produce or what they earn A market economy another common economic system system is driven by supply and demand Demand is the quantity quantity of a product or service that people want and supply is the amount that the market can provide Individuals seek financial reward by supplying the things that others are willing to buy Throughout history market economies have proved more effective in creating wealth than command 8