Question

Choose one advantage and one disadvantage listed on the infographic for each system(pure command economy and pure market economy ) in ur own words, give a specific example of how canada has experienced the advantages and disadvantages you chose

Answer 1

Pure Command Economy:

Advantage: Centralized planning can promote social equality. In Canada, the advantage of a more centralized healthcare system exemplifies this. The government's role in planning healthcare resources helps ensure a more equitable distribution of medical services, contributing to a healthier population overall.

Disadvantage: Lack of flexibility and innovation. For instance, during economic shifts, a pure command economy might struggle to adapt quickly. In Canada, periods of economic change may lead to bureaucratic challenges in adjusting policies, potentially hindering the economy's responsiveness.

Pure Market Economy:

Advantage: Efficient resource allocation. Canada's resource-rich economy benefits from the advantage of a market-driven system, allowing for efficient allocation of resources in industries like natural resources and technology. This dynamic allocation helps maximize productivity.

Disadvantage: Economic inequality. While market economies can spur innovation and growth, they may also lead to wealth concentration. In Canada, this can be observed in income disparities, where certain segments of the population benefit disproportionately from market-driven success, exacerbating social inequality.