Which economic system is based on a command economy rather than a free-market economy?

The economic system that is based on a command economy, rather than a free-market economy, is often referred to as a "centrally planned economy" or "socialism." In a command economy, key economic decisions such as what goods and services to produce, how to produce them, the quantities, and the prices are made by the government or a central authority. The central government typically owns and controls the means of production, and planning authorities set production goals and allocate resources to meet these objectives. Soviet-style communism is a classic example of a command economy.

In the spectrum of economic systems, command economies and free-market economies represent two fundamental approaches. Free-market economies, also known as "capitalist economies," operate on the principle that individual consumers and producers make decisions based on their own interests, such as profit and utility. Supply and demand determine the allocation of resources, and prices are set by the market. Examples of countries with more free-market-oriented policies include the United States and other developed nations with market-based systems.

In contrast, command economies believe that the government, rather than the market, should dictate the production and distribution of goods and services. Proponents argue that this system can quickly mobilize resources, achieve social goals, and prevent the inequalities seen in capitalist systems. However, critics of command economies point out the lack of efficiency, innovation, and personal freedom that often accompany such systems.

Lastly, it's worth mentioning that in reality, most economies today operate on a mixed basis, incorporating elements of both free markets and government intervention. This mix aims to balance the benefits of a market system with the social welfare goals of a command economy. Countries like China and Russia have evolved from strict command economies to more mixed systems, incorporating varying levels of market mechanisms alongside state planning.