One of the characteristics of a command economy is <u>the government controls the prices of most goods and services.
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<h3>Further explanation
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A command economy is where the government makes all economic decision. It doesn't allow market forces such as demand and supply to determine what, how much, and at what price they should produce goods.
The goals of the command economy are to create equality within a society and to use resources to maximize social welfare.
Five characteristics of the command economy are:
- The government creates a central economic plan.
- The government allocates all resources according to the central economic plan.
- The central economic plan makes prioritize for goods productions and services.
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The government owns monopoly businesses.
- The government creates laws and regulation to enforce the central economic plan.
Another type of economic system is a market economy, traditional economy, and a mixed economic system. Nowadays, many command economies began adding aspects of the market economy, we call it a mixed economic system.
<h3>Learn more
</h3>
The goal of the command economy brainly.com/question/1362251
Characteristic of command economy brainly.com/question/2065265
The function of the economic system brainly.com/question/12060180
Keywords: command economy, central government, characteristic of a command economy, economic system
Answer:
Vol. 21:155-173 (Volume publication date May 2018)
First published as a Review in Advance on January 26, 2018
https://doi.org/10.1146/annurev-polisci-041916-020230