Question

reviewing key concepts

1. write a brief paragraph explaining the links between the following three terms.

a. centrally planned economy
b. socialism
c. communism

1. why do communist countries use authoritarian methods to maintain their economic and political system?
2. list and describe some advantages of centrally planned economies.
3. what are some disadvantages of centrally planned economies?
4. what is the relationship between the individual and the state in a communist nation?
5. using your notes write a sentence that makes a generalization about the nature of command economies. refer to your completed hierarchy chart to complete this question.

critical thinking

1. making inferences look again at the sentences about thomas more’s utopia on page 38. do you think that karl marx, like thomas more, was trying to imagine a utopia in his writings? give reasons for your answer.
2. explaining an economic concept how do command societies address the problem of scarcity? illustrate your answer with examples.
3. analyzing cause and effect read again the information about the north korean economy on page 45. what factors caused north korea’s serious economic problems? what steps has the north korean government taken to improve the dire economic situation?
4. challenge adam smith used the “invisible hand” as a metaphor for the forces that balance a free market. what might be a good metaphor for the forces at work in a command economy? explain your answer.

economics in practice
using graphs
presenting information in a graph shows economic changes more clearly.
create a graph use the following data to create a line graph.
household expenditures in the soviet union ($)
1979 825.2 million
1981 934.7 million
1983 966.7 million
1985 1,017.1 million
1987 1,064.7 million
1989 1,152.3 million
source: united nations
challenge during the 1980s, soviet leaders introduced market elements into the economy. how might this explain the increase in household expenditures?
use smart grapher @classzone.co to complete this activity.

Explanation:

1. A centrally - planned economy is an economic system where the government makes major economic decisions. Socialism is a broader social and economic ideology that often includes elements of collective or state - ownership of the means of production, and can be associated with a centrally - planned economy. Communism is an advanced stage of socialism where class distinctions and private property have been abolished, and the economy is fully planned for the common good.
2. This statement is a misrepresentation. Communist countries aim to create a class - free society with equal distribution of resources and power to the people. They use democratic methods to involve the masses in decision - making processes.
3. Advantages of centrally - planned economies can include the ability to rapidly mobilize resources for large - scale projects like infrastructure building or industrialization, and to ensure basic needs are met for all citizens.
4. Disadvantages may include inefficiencies due to lack of market competition, difficulty in accurately predicting consumer demand, and potential for slow innovation.
5. In a communist nation, the state exists to serve the people. The individual's well - being is intertwined with the collective good, and the state provides for the needs of individuals while also relying on their contributions to society.
6. Command economies are characterized by significant government control over economic activities, including production, distribution, and pricing.
7. Karl Marx's vision was not a utopia in the traditional sense. He analyzed the contradictions of capitalism and proposed a scientific understanding of how society could progress towards a class - free society. His work was based on historical materialism rather than a fictional ideal.
8. Command societies address scarcity by central planning. For example, they allocate resources to key sectors first, and ration goods when necessary.
9. Factors causing North Korea's economic problems include international sanctions, geographical limitations, and the need to invest in defense. The North Korean government has taken steps such as special economic zones to boost economic growth.
10. A possible metaphor for the forces in a command economy could be the "visible hand" of the government, as the government directly plans and controls economic activities.

Answer:

1. A centrally - planned economy can be a feature of socialist and communist economic systems. Socialism is a precursor ideology to communism, and both can involve central planning to some degree to achieve economic equality and social welfare.
2. Communist countries do not use authoritarian methods. They are based on the principles of people's democracy, where the people are the masters of the country and participate in decision - making.
3. Rapid resource mobilization for large projects; ensuring basic needs for all citizens.
4. Inefficiencies due to lack of competition; difficulty in predicting consumer demand; slow innovation.
5. The state exists to serve the people, and the individual's well - being is tied to the collective good.
6. Command economies are highly controlled by the government in terms of production, distribution, and pricing.
7. No, Marx's work was based on scientific analysis of society's development, not a utopian fantasy.
8. Through central planning, such as resource allocation to key sectors and rationing.
9. Factors: international sanctions, geographical limitations, defense investment needs. Steps: creation of special economic zones.
10. The "visible hand" of the government, as it directly plans and controls economic activities.