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Furkat [3]
3 years ago
14

5. What is a command economy? How is it different from the economy in the United

History
1 answer:
Diano4ka-milaya [45]3 years ago
4 0

Answer: The answers are provided below

Explanation:

A command economy is also called a planned economy and it is a type of economic system where the investment, production and allocation of goods take place according to economic and production plans. In a command economy, the government determines income, production and prices. The United States make use of the mixed economy system which is an economic system which features characteristics of capitalism and socialism i.e individuals, firm and government all have a role to play in the allocation of resources and price determination.

The goal of the Five Year plan was to take the Soviet Union from a weak and poorly controlled, agricultural state to an industrial powerhouse. It was successful to some extent, as there was rapid industrialisation in the USSR. In about 4–5 years, the industrial output of the USSR had been doubled and this even happened during the great depression, where most of the industrial output fell in other countries.

The Five Year Plans was evidence of a command economy as the government made all the economic decisions.

The goal of collectivization which was adopted by the Soviet government, and pursued between 1929 and 1933, was to transform the traditional agriculture that existed in the Soviet Union and also to reduce the economic power that the prosperous peasants known as the kulaks had. Socially, collectivisation was a failure as it provoked resistance and violent opposition. In an attempt not to give their crops and livestock, the farmers killed their livestocks and burnt their crops.

Collectivization was evidence of a command economy as the government wanted to make all the economic decisions in the economy regarding production and other vital aspects of the economy.

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