Command Economy

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Who controls the economy?

The government controls the command economy. It is also in charge of all mayor aspects of the economy and it's production. The government decides what to produce, how to produce goods and how to distribute goods and services within the economy. The command economy is often associated with the communism political system.

Roles of the citizens/people?

Freedoms of the people?

In a command economy people are not provided with many economic choices by central government,

Producer and consumer interaction

Government pricing and production decisions. In a command economy, production is decided by government agencies, who decide the most socially efficient goods to produce.

Where is it?

Three specific examples

• Cuba

• North Korea

• Vietnam

• China

• Laos


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Why is your economy the best?

Can prevent abuse of monopoly power.
Can prevent mass unemployment.
Can produce goods which benefit society and ensure everyone has access to basic necessities.

Weaknesses of the other Economies

mixed economy- Focus more on government control and less towards individual freedoms.

Traditional economy- traditional economy does not allow for much economic growth and development as changes are very slow and there is very little social mobility.

Free market economy- can fail to provide certain goods and services. May encourage the consumption of harmful goods. Market systems only allows more goods and services to those consumers who have more money than others.

Why should your economy run the world?

  • Supporters of command economies argue that it enables the government to overcome market failure, inequality and create a society that maximises social welfare rather than maximises profit. Command economies can prevent abuse of monopoly power. My economy should also run the world becuase all power goes to the government, which has full control of it's economy and production.