How does a command economy handle natural resources?

Economics Command Economy Questions



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How does a command economy handle natural resources?

In a command economy, the government has control over the allocation and utilization of natural resources. It determines how these resources are used, distributed, and managed based on its economic and political objectives. The government may prioritize certain industries or sectors that require natural resources and allocate them accordingly. It can also regulate the extraction, production, and consumption of natural resources to ensure sustainability and meet the needs of the population. However, the effectiveness of resource management in a command economy can vary depending on the government's policies and decision-making processes.