Production in Command Economies.docx - A command economy is an economic system in which the government or the central planner determines what goods and

Production in Command Economies.docx - A command economy is...

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A command economy is an economic system in which the government, or the central planner, determines what goods and services should be produced, the supply that should be produced, and the price of goods and services. Some examples of countries that have command economies are Cuba, North Korea and the former Soviet Union. Government Controls Production in Command Economy In a command economy , the government controls major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public. The government prices and produces goods and services that it thinks benefits the people. A country that has a command economy focuses on macroeconomic objectives and political considerations to determine what goods and services the country produces and how much it will produce. It generally has macroeconomic goals that the government wants to meet, and it will produce goods and services to do so. The government allocates its resources based on these
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