Guys write everything here in script form like

For country: this economy is better bc (give advantage)

Against country: (disagree with the point previously mentioned) and then give a disadvantage

For country: disagree with against point and give another advantage

Against country: disagree with that and give another disadvantage

And then this continues on till for country has given 4 advantages and against has given 4 disadvantages

After the last disadvantage theres going to be no resolution/agreement and the debate ends there

Then zonish gives the conclusion

Intro - Zonish

(definitions of imp. terms)

Market Economy - Fatima, Sophie

(USA vs Pakistan)

USA:

USA: Market economies promote competition between businesses, resulting in increased innovation
and efficiency

Pak: Actually, this competition causes firms to increase quantity and quality of production which often
results in monopolies and leaves no room for smaller businesses to expand. This is an obstacle to
economic growth. The private sector is also motivated by profit and cannot be trusted to run the
economy as they will do what is in their own best interest at the cost of the country's economy. For
example, the private sector can choose to produce more demerit goods instead of merit goods so that
they get more benefits at the cost of consumer benefits.

USA: Okay, but even if private sectors don’t specifically produce public goods because their motive is
profit, they still prioritise consumers, so they are benefitted. Market economies normally generate a
high amount of income and greatly contribute to a country’s GDP without excess government
interference and economic freedom for businesses. The USA’s GDP is 23.32 trillion dollars, making us
one of the largest economies in the world

Pak: You say that the government not being allowed to "interfere" allows economic freedom but in
Pakistan’s case, the government not being able to intervene in economic activities has negatively
affected the economy as customers and producers who do not necessarily understand or even care for
the economic situation of the country are in charge of what is being produced and supplied. This means
that producers and consumers determine the prices of goods and services and the resulting prices may
not be what the country needs.

USA: it DOES allow economic freedom because it lets businesses to make their own choices in terms of
economic activities without the government interfering in their activities. This also limits corruption in

the economy, which is a common problem in sOME 🤨 countries. Market economies also follow the price
mechanism, so consumer demands are prioritised in these economies. This also prevents wastage of
resources because they are allocated more efficiently, preventing there from being shortage and surplus
of materials

Pak: while you believe the government not intervening means economic freedom, the government
having limited authority in the economy means they also can't create jobs for people which is partially
what has resulted in the widespread unemployment in Pakistan. As the government is unable to keep
checks the working conditions being poor is a prevalent issue in Pakistan. Many people are exploited as
the government does not have the ability to intervene

USA: actually, employment is increased because entrepreneurship is incentivised in market economies

Anyways, in terms of economics, we should talk about externalities

Pak: Pakistan faced a negative externality in 2022 when were only able to dedicate 2.8% of our GDP to
education which is one of the world's lowest expenditures. This happened as a result of investment in
other sectors which is greatly influenced by producers in a market economy.

USA: Market economies can help address these negative externalities through encouraging
entrepreneurship, which allows for innovations to be made that can mitigate problems caused by them.
Consumers also prefer products with limited negative externalities, and as market economies cater to
the preferences of consumers, producers are motivated to decrease production of such products.
Pak: As producers are extremely influential in Market Economies, they have the ability to spread the
idea of consumerism for their own gain. this results in overconsumption of valuable and often finite
resources. Producers will often not promote those goods that do not give them any additional benefits
and so underconsumption of these goods leads to the lack of production of them even if they may be
essential for the country's economy to flourish.

(ZONISH’S PART)

Command Economy - Kais, Zara

(China vs Cooba)

China: A command economy is a planned economic system. In this kind of economy, the government
makes the crucial decisions, land and capital are state-owned resources that are allocated by directives.
The state decides who gets the products made by deciding on the remuneration given to workers and by
controlling prices. For example, they can have a minimum wage to ensure that workers are not
exploited.

Cuba:The economy of Cuba is dominated by state-run enterprises. Most of the labor force employed by
the state.Cuba was affected badly by its command economy as well as the COVID-19 pandemic. The
government provides merit goods which result in positive externalities like healthcare and education.
However,Negative externalities and de merit goods include tobacco which results in deteriorated health.

China: Actually a command economy is usually able to better deal with a crisis when the labour force is
employed by the state. Before 1978, China operated under a command economy, which allowed the
government to provide basic needs like education, transportation, and housing at low or no cost. The
government was also able to ensure maximum consumption of merit goods and minimum consumption
of demerit goods by having higher taxes for demerit goods and very low taxes for merit goods.

Cuba: The disadvantages of Cuba's command economy and the reasons for it falling behind are

Lack of incentives: The government may not provide businesses with incentives to be productive as they
control the economy. Since there is no guarantee of a financial reward no one is motivated to improve
their business.
Lack of innovation- Since it is a centralized government businesses follow the directives of the
government. As a result there is less competition and new technology is not developed due to risks not
being taken.

Inefficiency- It may lead to inefficient allocation of resources as it is challenging for the government to
allocate resources effectively. It can result in overproduction or shortages of goods.

Lack of economic freedom: The government sets limitations which restrict economic freedom resulting
in less opportunity to make individual choices and prevents growth opportunities.

Less flexible: It is harder for command economies to adapt to changing economic conditions when it is
controlled by a central authority.This can result in economic stagnation

Limited consumer choice- In a command economy consumers have a limited variety of goods as the
government decides which goods and services are produced.

China:Actually a command economy means that the government is able to provide more incentives to
encourage businesses and innovation and is also equipped to allocate resources efficiently. In a
command economy the prices are determined by the administration instead of the price
mechanism(According to the economic times, the price mechanisms is the system where the forces of
demand and supply determine the prices of commodities and the changes therein.) Instead, prices are
changed to achieve social or political objectives.

Cuba:Since the government has complete control over the economy there is no economic growth,
consumers have limited choices and the overall well being of the people is affected. The reason cuba
declined is because of the incompetence of the government as a command economy and since the
economy is not influenced by price mechanism(demand,supply)individals cannot make their own
choices.This lack of economic freedom and no signals to producers results in firms being less productive
and less efficient

China: In a command economy, the government’s role is to control negative externalities and encourage
positive ones. For example, the government may choose to heavily tax or ban the import of alcohol.

China: The profit motive does not exist in a command economy.Hence, as the motive is welfare, public
goods and merit goods can be developed.

China: A command economy focuses on the common good of the people. This reduces inequality as the
government is answering the three questions of “what to produce, how to produce and for whom.” This
leads to a fair and equal distribution of goods and services, as allocated by the government rather than
the rich exploiting the working class and the working class not having access to even basic resources.
Comparison - Zonish

Quiz qs

Zara:

Debate About Command Economy

A command ecnomy is a planned economic system. In this kind of economy, the government makes the
crucial decisions, land and capital are state-owned resources that are allocated by directives. The state
decides who gets the products madeby deciding on the remuneration given to workers and by
controlling prices.(Kais speaks)

Before 1978, China operated under a command economy, which allowed the government to provide
basic needs like education, transportation, and housing at low or no cost. The government was also able
to ensure maximum consumption of merit goods and minimum consumption of demerit goods by
having higher taxes for demerit goods and very low taxes for merit goods.(Kais speaks)

In a command economy the prices are determined by the administration instead of the price
mechanism(According to the economic times, the price mechanisms is the system where the forces of
demand and supply determine the prices of commodities and the changes therein.) Instead, prices are
changed to achieve social or political objectives.

In a command economy, the government’s role is to control negative externalities and encourage
positive ones. For example, the government may choose to heavily tax or ban the import of alcohol.
(Kais speaks)

The profit motive does not exist in a command economy.Hence, as the motive is welfare, public goods
and merit goods can be developed.