What Are the Characteristics of a Command Economy?

The command economy is an economic system. In this system, economic action is not formulated in accordance with the market, but in political institutions.

Command economy

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The command economy is an economic system. In this system, economic action is not formulated in accordance with the market, but in political institutions.
Chinese name
Command economy
Foreign name
command economy
expression
Command economy is an economic system
Applied discipline
economic
Scope of application
economic
The order economy refers to an economic management method that uses the administrative means such as orders, directives, rules and regulations to manage the economy, rather than the market mechanism. The production cycle and all activities of enterprises in such an economy, adjustments during economic imbalances, and coordination among them, typically and basically use administrative orders. The most obvious feature is that the production goals of the enterprise are determined by the instructions of the higher level. Administrative methods are mainly other methods such as planning, budgeting, material balance sheet, quota, technical coefficient, price and wage control.
Moreover, the command economy is controlled by the government and cannot be changed at will.

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