How does a command economy handle entrepreneurship?

Economics Command Economy Questions



63 Short 71 Medium 46 Long Answer Questions Question Index

How does a command economy handle entrepreneurship?

In a command economy, the government has control over the allocation of resources and the production of goods and services. Therefore, entrepreneurship is typically limited or non-existent in such an economic system. The government determines what goods and services are produced, how they are produced, and who receives them, leaving little room for individual initiative or entrepreneurial activities. The focus is on central planning and fulfilling the goals set by the government rather than on individual entrepreneurship and innovation.