What are the characteristics of the command economy?

The command economy is one in which all aspects of the economic system of a particular nation are to some extent controlled by a centralized body, usually by the government. Each step in the production process, from the use of resources to volumes created to wages obtained, is dominated by the government and wealth is redistributed, as the ruling power is considered appropriate. As a result, one of the main characteristics of the command economy, also known as the planned economy, is that the individual efforts for wealth are replaced by the common efforts of all economic channels to improve society as a whole.

There are two types of economies in the world. Most countries prefer a market economy characterized by a market for goods and services based on the laws of supply and demand and unlimited by any external control. On the other hand, within the command economy, every decision on the economy is made by a centralized government, as in the former Soviet Union.

very often with charactCommunication economics are discovered when they are listed as opposed to the market economy. For example, the levels of production are decided in the market economy depending on what type of demand exists for a specific product. In the command economy, the control body decides what is made and in what part of the country should be assigned.

Prices are another part of the command of the economy that falls under the authority of the government. Since the profits are transferred back to the government, the price levels are ideally established so that there is a certain advantage for the country. This happens when the government redistributes wealth throughout society by deciding wages for work and using money for government products in favor of citizens.

of all characteristics of this type of economy, perhaps the most general and most advantageous is the overall subordination of the individual of the team. If it is done correctly, the command economist canIka effectively manage resources to exist minimal waste and also maintain prices at a level that benefits the vast majority of the population. The work can also be checked to discourage high unemployment. All these benefits come at the expense of certain individual freedoms related to the accumulation of personal wealth.