Economics Command Economy Questions
In a command economy, economic diversification is typically handled through central planning and government control. The government determines the allocation of resources and directs industries and sectors towards specific goals and priorities. This can involve the establishment of new industries, the expansion of existing ones, or the reallocation of resources from one sector to another. The government may also provide incentives or subsidies to encourage diversification in certain areas deemed important for the economy. Overall, the command economy aims to achieve economic diversification by actively guiding and controlling the allocation of resources and directing economic activities towards desired outcomes.