An economy may be viewed as the application of skills, labour and inanimate energy through equipment to resources (raw or semi-finished, domestic or imported), with the help of services (construction, transport, commerce, finance, education and research) to the requirements of a market or a plan, to achieve an output of goods and services to satisfy a demand (domestic and foreign). Such a process needs organisation and administration. The key phrase in the above definition for this comparison is ‘according to a market or plan’. It has already been stated that the oft-asserted contrast between the USA and the USSR as that between a market economy and a planned economy is too simple, since the American economy contains a growing element of planning.
KeywordsPersonal Income National Product Gross National Product Military Expenditure Collective Farm
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