Command economy

Definitions

An economic system in which the government or a central authority determines what goods are produced, how much is produced, and the price at which the goods are sold.

A system where the means of production are publicly owned and economic activity is controlled by a central planning authority.

Examples

In a command economy, the central government makes all major decisions regarding the production and distribution of goods.

Many historical examples of a command economy have struggled to efficiently allocate resources compared to market-based systems.

Synonyms

Planned economy Centrally planned economy State-directed economy Command system

Antonyms

Market economy Free market system Laissez-faire economy Capitalist economy