Enhance Your Learning with Economics - Command Economy Flash Cards for quick learning
An economic system in which the government has full control over the production, distribution, and pricing of goods and services.
A key feature of a command economy where the government makes all economic decisions and sets production targets and quotas.
In a command economy, the government has complete authority over all economic activities, including ownership of resources and businesses.
The process of distributing and utilizing resources in a command economy, typically done by the government based on its priorities and plans.
1. Lack of individual freedom and limited consumer choices. 2. Inefficiency due to lack of competition and market forces. 3. Slow response to changing consumer demands. 4. Lack of innovation and incentive for entrepreneurship.
1. North Korea 2. Cuba 3. Former Soviet Union 4. China (to some extent)
The process of shifting from a command economy to a market-based system, often involving privatization, deregulation, and opening up to international trade.
Command economies are often contrasted with market economies and mixed economies, highlighting differences in resource allocation, government intervention, and individual freedom.
Critics argue that command economies suffer from inefficiency, lack of innovation, and suppression of individual freedoms. They also point out the potential for corruption and abuse of power by the government.