Command Economy

Filed Under » ,
Dictionary Says

Definition of 'Command Economy'

A system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale. The command economy is a key feature of any communist society. China, Cuba, North Korea and the former Soviet Union are examples of countries that have command economies.
Investopedia Says

Investopedia explains 'Command Economy'

Also known as a planned economy, command economies are unable to efficiently allocate goods because of the knowledge problem - the central planner's inability to discern how much of a good should be produced. Shortages and surpluses are a common consequence of command economies. A free-market price system, on the other hand, signals to producers what they should be creating and in what quantities, resulting in a much more efficient allocation of goods.
Search results for

'Command Economy'

  • Economics Basics: What Is Economics? | Investopedia

    http://www.investopedia.com/university/economics/economics1.asp
    ... The systems by which nations allocate their resources can be placed on a spectrum
    where the command economy is on the one end and the market economy is on the ...

  • How Education And Training Affect The Economy

    http://www.investopedia.com/articles/economics/09/education-training-advantages.asp
    ... Will the newly trained worker be able to command a higher wage? ... For the Economy Many
    countries have placed greater emphasis on developing an education system ...

  • CFA Level 1 Study Guide - Microeconomics - Market Efficiency ...

    http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/market-efficiency.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Which Consumer Do You Bet On?

    http://stocks.investopedia.com/stock-analysis/2011/Which-Consumer-Do-You-Bet-On-CMG-PNRA-SKS-WMT-TGT1118.aspx
    ... to thrive and its consumers are an excellent proxy for the US economy. ... CMG) and Panera
    Bread (Nasdaq:PNRA), whose fast-casual menu offerings command a higher ...

  • A Portfolio For The 'New Normal'

    http://stocks.investopedia.com/stock-analysis/2009/A-Portfolio-For-The-New-Normal-WMK-STZ-CHD1125.aspx
    ... era of thrift, and they will continue to do so if the economy stays in ... in global
    beer distributor Crown Imports, which should help Constellation command a more ...

  • How The Federal Reserve Was Formed

    http://www.investopedia.com/articles/economics/08/federal-reserve.asp
    ... to push the economy over the edge into a full crash and depression. Morgan was able
    to convene all the principal players at his mansion and command all their ...

  • CFA Question of the Week 04/19/2006 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/cfa/041906.asp
    ... The result is that fiscal policy becomes ineffective in influencing the economy;
    although the government will now command a greater proportion of economic ...

  • The Economics Of Labor Mobility

    http://www.investopedia.com/articles/economics/09/labor-mobility.asp
    ... If an economy is shifting toward new industries, employees must be available to
    run ... This is why physicians can command higher wages, because the demand for ...

  • 4 Misconceptions About Free Markets

    http://www.investopedia.com/articles/economics/10/free-market-misconceptions.asp
    ... can help select groups in the short-term, for example, a farmer might command a
    higher price ... Even the government understands that taxes drag on the economy. ...

  • How Globalization Affects Developed Countries

    http://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp
    ... In a global economy, power is the ability of a company to command both tangible
    and intangible assets that create customer loyalty, regardless of location. ...

Related Articles

Partner Links