What is a command economy?

The command economy, also known as a planned economy, requires that a nation's central government own and control the means of production. Private ownership of land and capital is nonexistent or severely limited. Central planners set prices, control production levels, and limit or prohibit competition within the private sector.

Which countries have a command economy?

In a free-market system, private enterprises set production and price levels based on demand. Cuba, North Korea, and the former Soviet Union all have command economies. China maintained a command economy until 1978 when it began its transition to a mixed economy that blends communist and capitalist elements.

Does North Korea have a command economy?

North Korea is a country with a command economy. Sometimes called a planned economy, a command economy is an economic system where the government maintains control over the production and pricing of goods and services.