Based on the link below, assess the degree to which the North and South Korean economies reflect the differences between command and market economies. This is question 4 in...
Based on the link below, assess the degree to which the North and South Korean economies reflect the differences between command and market economies.
This is question 4 in http://postimage.org/image/d4t4xt34r/
The information provided in this table generally reflects the fact that market economies are more prosperous, more efficient, and more likely to give consumers what they want.
Most importantly, we can see that South Korea's GDP per capita is almost 20 times higher than that of North Korea. Market economies are more likely to be prosperous because they allow the profit motive to work, giving people the incentive to work hard.
Market economies are more efficient. This is because competition forces firms to become as efficient as possible so they do not go broke. This can be seen, for example, in the fact that North Korea needs a much higher percentage of its workers in industry to create a given level of output (65% of the workers leads to 43% of GDP, as opposed to South Korea where 24% of the workers create 39% of GDP).
Finally, market economies give consumers what they want. They tend to provide many services that are not provided in command economies. This can be seen in the higher percentage of South Korea's GDP that comes from services.