<u>Command economy is the economy in which resources are taken by the government, and all the prices of the products in an economy are determined by the government. The government has the major role in command economy.
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Further Explanation:
Salient Features of Command Economy:
• The government intervenes in this type of economy. The government is the centrally controlled power in the command economy.
• The total resources of an economy are controlled by the government. The government decides how to use the resources, and make the investment.
• The government determines the prices of the goods, decides the interest rates and plan accordingly to control any unforeseen activities. All the decisions related to the price of the products are determined by the government.
• There is the lack of free market forces: The prices are not determined by the demand and supply of the goods. The free market is the market in which price is determined by the forces of demand and supply.
• Private sectors, corporations, and institutions do not exist in the command economy. All the resources are in the government’s possession.
• There is no competition in the market because all the resources are owned by the government.
• The government has a monopoly in the command economy. A monopoly is a situation in which only single entity has the power to change the price , demand, and supply of the goods. This power has been taken by the government in this type of economy.
Learn more:
1. Learn more about the demand curve
brainly.com/question/8794304
2. Learn more about the supply curve
brainly.com/question/2195487
3. Learn more about government intervention
brainly.com/question/6156396
Answer details:
Grade: Middle School
Subject: Economics
Chapter: Types of Economy
Keywords: resources, owned by the government, no competition, monopoly, and government intervention, goods, demand and supply curve, market forces
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