BY: Martnel, Damian, Roshawna, Deja, Mary
What is a Command Economy?
Is an economy in which the government has the right of power over the financial management of a country.
Examples of countries with a command economy:
- North Korea
Characteristics of a Command Economy.
- Government is in control with the pricing of goods and services.
- Government creates the central economic plan for all sectors and regions of the country.
- The government creates laws, regulation and directives to implement the central plan.
- Enable government to overcome market failure.
- Creates society that maximizes social welfare.
- Prevents monopoly.
- Unable to respond to consumer preference.
- Threatens democracy and liberty.
- Bureaucratic ( Over concerned with procedure at the expense of efficiency or common sense).
Is this economic system a viable place to live or not? How is it better than the others?
Its good because everyone's basic needs are typically met, but if you are ambitious and want more it is not the most ideal place to live in because the government calls for everything without really consulting what the citizens might want. For example if you want to work, the job that you want to work for might not be the job that you will work for because the government wants you to work on something else.