Quick Definition

A command economy is an economic system where the government has full control over the production and distribution of goods and services.

Examples

• 1In a command economy, the government decides what goods should be produced, how much should be produced, and the price at which the goods will be sold.
• 2Examples of command economies include the former Soviet Union, North Korea, and Cuba, where most economic decisions are made by the government.
• 3In command economies, the government often owns all the major industries, such as manufacturing, transportation, and healthcare.
• 4The government in a command economy may also control labor allocation, determining where individuals work and what jobs they perform.

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