In a command economy, the resources are owned and controlled by the government. This form of economic structure is characterized by central planning, where the government makes all the decisions regarding the production and distribution of goods and services.
The rationale behind a command economy is to eliminate the disparities caused by private ownership and to distribute resources according to a central plan that aims to meet the needs of the entire population. In such economies, individuals or private entities have little to no ability to own property or businesses. Instead, the government allocates resources, determines production levels, and sets prices.
One of the main features of a command economy is its emphasis on collective goals over individual profit. The government may seek to achieve specific socioeconomic objectives, such as reducing unemployment or ensuring access to basic necessities for all citizens. However, this can also lead to inefficiencies, as the lack of competition and consumer choice may result in shortages or surpluses of goods.