What is an example of a command economy?

Other examples of command economies include Belarus, Iran, North Korea, and the former Soviet Union. In a modern, centrally planned command economy, the government creates a central economic plan.

What are the characteristics of a command economy?

A command economy has a few key characteristics, including the following: The government creates a comprehensive economic plan covering everything from production and distribution to the consumption of goods and services. It also sets specific goals for each sector and region.

How do command economies work?

Command economies tend to be very bureaucratic with decisions held up by planning and committees. Price controls invariably lead to shortages and surpluses. From the 1980s, many command economies, such as the Soviet Union began to make the transition to a mixed economy. This involved a process of privatisation and price deregulation.