Command Economy

Definition

A command economy is an economic system in which the government has complete control over the production, distribution, and pricing of goods and services.

Related terms

Central Planning: This term refers to a process in which a central authority (usually the government) makes all economic decisions on behalf of individuals and businesses.

State-Owned Enterprises: These are companies or industries that are owned and operated by the government in a command economy.

Price Controls: In a command economy, price controls are regulations set by the government to dictate how much goods or services should cost.