Definition, Meaning & Synonyms
command-economy
Noun
/kəˈmænd ˈɛkəˌnɑmi/
Definition
An economic system where the government makes all decisions regarding the production and distribution of goods and services.
Examples
- In a command economy, the government determines what products are available and their prices.
- Countries like North Korea operate under a command economy structure.
- Critics argue that command economies lack efficiency due to the absence of competition.
Meaning
In a command economy, the state controls major aspects of economic activity, unlike a market economy where these decisions are made by individuals and businesses.
Synonyms
- Planned economy
- State-controlled economy
- Centralized economy
