Command Economy Written by Alison Backel
A command economy is defined as how the government decides what goods and services will be produced, how they will be produced, and how they will be distributed. Some examples would be North Korea, China, and Cuba.
Advantages- Can prevent huge monopolies from forming, since they produce goods they will have a lot of necessities close by and benefit society, can prevent mass unemployment, helps mobilize economic resources.
Disadvantages- Cannot respond to consumer preferences, threatens democracy and liberty, has difficulties producing the right exports, rarely meets consumer needs, and is not very coordinated and has misplaced incentives.
3 Economic Questions
The government decides what to produce, the government makes all the economic decisions. The government also decides how to make the products, and who to give them too, they control what the supply is and who demands it.
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