What is the relationship between a command economy and communism?

Economics Command Economy Questions



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What is the relationship between a command economy and communism?

In a command economy, the government has complete control over the allocation of resources and the production of goods and services. This economic system is closely associated with communism, as both concepts share the idea of collective ownership and control over the means of production. In a command economy, the government typically owns and operates most industries, and decisions regarding production, distribution, and pricing are made by central planning authorities. This centralized control aligns with the principles of communism, which aims to create a classless society where resources are distributed based on need rather than individual wealth or ownership.