Command Economy

Defined as an economy in which production, investment, prices, and incomes are determined centrally by a government. This economic system usually is brought with a communism society. China, Cuba, North Korea and the former Soviet Union are examples of countries that have Command economies

What will be produced?
Food, Shelter, and Clothing are provided to the public

How will it be produced
Government issues resources for the public

For whom it will be produced
the residents in the command economic countrys

Government officials consider the resources and needs of the country and allocate those resources according to their judgement. The wants of individual consumers are rarely considered. Before the collapse of communism in Europe, countries such as the Soviet Union, Poland, and East Germany were command economies


  • Command economies can prevent abuse of monopoly power.
  • Command economies can prevent mass unemployment, often a feature of capitalist economies.
  • Command economies could produce goods which benefit society and ensure everyone has access to basic necessities.


  • Government agencies usually have poor information about what to produce.
  • Unable to respond to consumer preferences
  • Threat to democracy and liberty.
  • Shortages and surpluses are a common consequence of command economies.
  • Some extent of forced economic roles

Comment Stream

2 years ago

I like how the advantages/disadvantages are separated and easy to understand. Good design of the page. However, you didn't address the 3 major economic questions.

2 years ago

Its good so far but it doesn't address the basic economic questions. This page feels really short because you are just missing that one part. I like how you put the title of the sources and then the link.

2 years ago

^ thank you, have updated the content