command economy

Definition

An economy where supply and price are regulated by the government rather than market forces. Government planners decide which goods and services are produced and how they are distributed. The former Soviet Union was an example of a command economy.

Also called a centrally planned economy.

Use command economy in a sentence

A command economy is considered a key feature of any communist society since the government has complete control and determines price and production off all goods and services within the economy.

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