A command economy tends to exist under a system of centralized government control. In this type of economy, the government makes all the decisions regarding the production and distribution of goods and services. This approach is often associated with authoritarian regimes where economic activities are planned and directed by the state.
The rationale behind a command economy is to achieve specific social goals, such as equitable distribution of resources or rapid industrialization. However, this system can lead to inefficiencies and lack of innovation, as the central planners may not respond effectively to consumer needs and market signals. Additionally, the absence of competition can result in lower quality goods and services.