Command economy disadvantages include a lack of competition, which can lead to a lack of innovation and efficiency. A command economy is one in which a centralized government controls the means of production and determines output levels.
What are the advantages of a command economy?
A command economy has a few advantages, which include the following: With a command economy, the government can quickly mobilize resources in the most efficient way to achieve its goals. This is because the government has all the important information about the economy. It can then make rapid decisions based on that information.
What is the main idea of a command economy?
The main idea of a command economy is that the government controls all major aspects of the economy and makes all decisions about production and distribution. It is also known as a centrally planned economy. How does central planning work in a command economy?
