From Command economy to Market economy
Date Submitted: 06/07/2004 23:27:11
Reasons
Increase in living standard greater opportunities for economic growth
As government got slightly influence in the intervention of the market, producers are free to raise or lower their prices according to the demand of the consumers - encourages the incentives in both sides, as producers are able to produce in competitive prices and consumers have wider varieties of choices.
Wise and better use in recourses
Responses from the consumers give price signals to sellers:
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or individuals can participate in the capital market
More demonstration of information:
People will be more concerned about the comparisons to other markets or countries
Better quality and quantity of goods:
More competition
Firms are individuals, they do their best to benefit themselves and so the resources are more fully used
Suppliers know more about what customers want, more interaction
GDP will increases:
The increase in efficiency, and better quality of goods can increase income.
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