Question

Read the information above about the two countries Kountry a and country be which of the two countries show signs of having a command economy explain your answer

Answer 1

A command economy is when government central planners own or control the means of production, and determine the distribution of output.

Command economies suffer from problems with poor incentives for planners, managers, and workers in state-owned enterprises.

Central planners in a command economy are unable to rationally determine the methods, quantities, proportions, location, and timing of economic activity across an economy without private property or the operation of supply and demand.