Command Economy

A command economy is an economic system where the government makes all major decisions about production, distribution, and pricing of goods and services. Unlike a market economy, where supply and demand drive choices, a command economy plans and controls economic activity to achieve specific goals, such as economic equality or rapid industrialization. State authorities determine what to produce, how to produce it, and who receives it. This system can lead to efficient resource allocation in some cases but may also result in shortages, surpluses, and lack of consumer choice due to rigid planning.