Economics Command Economy Questions
In a command economy, the government has complete control over the allocation of resources and production decisions. This centralized planning often leads to limited individual freedom and innovation, as the government determines what goods and services are produced and how they are distributed. As a result, command economies tend to have slower economic growth compared to market economies. The lack of competition and incentives for efficiency can lead to inefficiencies, misallocation of resources, and a lack of responsiveness to consumer demands. Additionally, the absence of market forces can hinder technological advancements and hinder overall economic development.