concept

Command Economy

A command economy is an economic system where the government or a central authority makes all major decisions about production, distribution, and resource allocation, rather than relying on market forces. It involves centralized planning to determine what goods and services are produced, how they are produced, and who receives them, often with the goal of achieving specific social or political objectives. This system contrasts with market economies where decisions are driven by supply and demand.

Also known as: Planned Economy, Centrally Planned Economy, Socialist Economy, State Economy, Centralized Economy
๐ŸงŠWhy learn Command Economy?

Developers should understand command economies when working on projects related to economic simulations, policy analysis tools, or systems that model resource allocation in controlled environments. This knowledge is particularly relevant for roles in government tech, economic research software, or applications that analyze historical or theoretical economic systems, such as in educational or analytical platforms.

Compare Command Economy

Learning Resources

Related Tools

Alternatives to Command Economy