Pick the best ones! Spelling Bee Quiz Can you outdo past winners of the National Spelli... The meaning of COMMAND ECONOMY is an economic system in which activity is controlled by a central authority and the means of production are publicly owned.
What is an example of a command economy?
The island is one of the few remaining examples of command economy. David Silverman / Getty Images In a command economy (also known as a centrally planned economy), the central government controls all major aspects of a nation's economy and production.
How does a command economy work?
The central authority in a command economy assigns production goals in terms of physical units and allocates physical quantities of raw materials to enterprises. The process for a large economy with millions of products is extremely complex and has encountered a number of difficulties in practice.
