Command Economy

Alex Ghiglieri

Command Economic System- When the Government decides on what will be produced, where it will be produced, how it will be produced and how it will be distributed to the masses.

Examples: Certain examples include, North Korea, Russia, China and Cuba. These Countries take care of all economic decisions.


1. The availability of the production of goods or services.

2. The use of production to control the entire economy of the Country.

3. Easy Response to natural disaters and internal crisis.

4. Constant information about the demands of goods/ services from people.


1. Failure of Coordination.

2.Misinterpreated/ misplaced incentives.

Three Factors of Production:

1.What will be produced: The Government takes control of what should be produced. If the Government wants the increased production of televisions, then factories produced more televisions.

2.Who will it be produced for: The people decide on what to buy, based on what they need and what is being produced.

3.How will it be produced: The Government decides on what is the best way to produced the products that they want. They ultimatly want to maximize their profits for the production and selling of goods.


Comment Stream

3 years ago

I like your head picture since it depicts the command economy really accurately. Another disadvantage I would add is that there is no room for growth in a command economy due to government deciding everything. - Timothy Yu

3 years ago

Nice headline photo it fits the theme of command economies well, the actual content of the site is nice as well.

3 years ago

The content placed on the site about the command economy is straightforward and easy to understand.

3 years ago

I also like your heading picture. I would also add the disadvantage of a lack of personal freedom. Command economies do not really consider the citizens for the factors of production, as the consumer has no influence on demand. Thus, what the consumer wants is not really what the consumer gets.

3 years ago

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