Question

What is a command economy and what are the advantages of a command economy?

Answer 1

A command economy is one that is controlled by a central authority - usually the government. The government controls the resources, allocates the resources, dictates the use of resources and the allocation of the products created by those resources. Under a command economy, there is generally full employment and the government can respond quickly in times of crisis.

Answer 2

A: A command economy is one in which a centralized government controls the means of production. ... There are advantages and disadvantages of command economy structures. Command economy advantages include low levels of inequality and unemployment and the common good replacing profit as the primary incentive of production.