Command Economy

By:Savanna Phifer

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What is a Command Economy?

A command economy is when the government controls everything. They make all the decisions on how much is produced, how much it cost, and where and how it's sold. Also for who it is produced.

The wealth is distributed equally among all the people, so basically everyone makes the same amount.

What are the Pros and Cons of a Command Economy?

PROS

Equal pay/income



CONS

Shortages

No competitions withing the economy to reduce/increase the prices in the economy

Not taking into account what the people want for and in the economy

No incentives to get ahead