Definition: A command economy is where a central government makes all economic decisions. The government or a collective owns the land and the means of production. It doesn't rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy. In recent years, many of these centrally-planned economies have added aspects of the market economy.
Physics · Middle School · Thu Feb 04 2021
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Definition accurately describes a command economy. In such a system, the central government holds authority over economic decisions, owns resources and means of production, and typically disregards market forces like supply and demand. It's notable that some command economies have integrated elements of market economies in recent times, reflecting a trend toward economic hybridization.