Command Economy

A command economy is also known as a:

• Free enterprise system

• Consumer-driven economy

• Prosperous economy

• Planned economy

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy. 

• Traditional 

• Market 

• Command 

• Mixed

What are the traits of a command economy?

• Make own goods, grow own food, barter, least used

• Has elements of two economic types

• Private ownership, free trade, competition, most used

• Government makes all economic decisions, communist countries

Which of the following is a characteristic feature of a command economy?

• High levels of entrepreneurial opportunities

• Minimal government involvement in the economy

• Centralized planning and governmental control of resources

• Unrestricted competition among businesses

Which type of economy is often associated with socialist or communist political systems?

• Mixed Economy

• Traditional Economy

• Market Economy

• Command Economy

What is a disadvantage of a command economy?

• It can lead to a lack of innovation due to government control.

• It relies too much on ancient traditions.

• It allows for too much competition.

• It encourages too much private ownership.

A command economy is characterized by which of the following?

• High levels of competition among businesses

• Minimal government intervention in economic decisions

• Government making all economic decisions

• Consumer preferences determining production

In a command economy...…(check all that apply)

• the government regulates the economic decisions

• the people decide the system

• mostly used under a Communist government

• is a great system to live under

Who decides what should be produced and how in a command economy?