Answer:
I. Personal property is prohibited.
II. The government decides what is made.
III. The government controls prices and supplies.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
Basically, there are four (4) main types of economy and these are;
I. Mixed economy.
II. Free market economy.
III. Traditional economy.
IV. Command economy.
A command economy is also known as planned economy and it can be defined as a type of economy in which the government owns and control the means of production.
Societies that operates a command economy generally practice communism.
Communism is a system of philosophical, political, social organization and economical ideologies that advocates the elimination of private property but a profit-based economy with public ownership of the means of production.
It ultimately aims to ensure each person contributes and receives according to their abilities and needs.
Vietnam, China and Cuba are examples of communist countries that operate a command economy.
The features of a command economy include the following;
I. Prohibition of personal property i.e private ownership of properties is generally prohibited.
II. The government is saddled with the responsibility of deciding what is produced or made in the country.
III. The prices and supply of goods and services is typically controlled by the government.
In conclusion, a command economy requires that the method of exchange, distribution, as well as the means of production of goods and services and allocation of resources for production should be controlled or regulated by the public (government) rather than the private sector.
