Command Economy

By: Jonathan Lopez, Gerald Areja, Vanessa Lopez

Command economy

Characteristics

  • The central governing authority makes all of the major economic decisions.
  • Led by a dictator or strong army.
  • Limit private property rights.
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Advantages

  • Everyone is equal.
  • Enables government to over come market failure.
  • Most citizens receive some goods and services that they would otherwise not be able to afford.

Disadvantages

  • Unable to respond to consumer preferences.
  • Loss of the individual freedom to choose.
  • Decision is taken by people that may have no access to what is actually happening
  • Bureaucratic.
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Viable place to live ?

  • They will have the sources to live but they wont have an option on what it is because the Government will choose it for them.
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Places with Command economies

  • North Korea
  • Cuba
  • Vietnam
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