Command Economy

By: Adriana Hernandez

Definition

  • economic system in which the government makes all decisions

Examples:

Advantages

  • prevent abuse of monopoly power
  • prevent mass unemployment
  • good are made that benefit society
  • ensure everyone has access to basic needs

Disadvantages

  • 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?

  • everyone

Comment Stream

2 years ago
0

I like where you are going and your structure when presenting the information. :D - Jeovanna

2 years ago
0

The advantages and disadvantages are laid out and easy to understand. The visual map that you provided let's me see where in the world command economies exist which shows the relationship to the development of the country. Good job. :)

2 years ago
0

The pictures you used make the website appealing and the layout was easy to understand, but the heading fonts could be more constant.