Command economies

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  • Created by: izzy
  • Created on: 09-06-13 10:57

A complete command economy is an economy in which all decisions about what, how, how much, when, where and for whom to produce are taken by a central planning authority, issuing commands or directives to all households and producers in the society. Such a system could only exist within a very rigid and probably totalitarian political framework because of the restrictions on individual decision making that are obviously implied.

In fact, in much the same way that pure market economy, in which the price mechanism alone allocates resources, is a theoretical abstraction ,


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