By: Adriana Hernandez
- economic system in which the government makes all decisions
- prevent abuse of monopoly power
- prevent mass unemployment
- good are made that benefit society
- ensure everyone has access to basic needs
- the wants of individuals are rarely considered
- government has control of all factors of production
- government doesn't have good information about what to make
- threat to democracy and liberty (very powerful government)
- government has unlimited power
- resources wasted (no supply and demand)
- no innovations (no competition)
What to produce and how much of it?
- decided by government to maximize social welfare
How to produce?
- labor incentive
For who will it be produced?