Final answer:
A command economy is one in which the government controls all aspects of production and distribution of goods and services, sets prices and wages, and often provides basic necessities like healthcare and education for free. Disadvantages include a lack of incentives and a slow response to market changes, with Cuba and North Korea being current examples.
Step-by-step explanation:
A command economy is a system where the central government makes all decisions about the production and distribution of goods and services. The government determines what will be produced, the prices of these goods and services, and the wages that workers will receive. It also decides on the methods of production. In command economies, the government often provides many necessities for free, such as healthcare and education.
This system aims to ensure that all members of society have access to basic needs, but it also has several disadvantages, including a lack of incentives for innovation and efficiency, and a general inability to respond quickly to consumer needs and market changes. Cultures like Cuba and North Korea are examples of countries with command economies.