Question

How does a command economy work?

Answer 1

A command economy is 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 are offered for sale. The command economy is a key feature of any communist society

Answer 2

A command economy works in such a way that the head (usually a government, a body of officials, or a dictator) makes all the decision for those affected (the country's population, workers, etc.).

An example can be seen from the U.S.S.R, which used the command economy, in which Stalin and his officials told the people what they should produce and how much of it.

~