Economics Command Economy Questions
In a command economy, the role of profit is typically minimized or eliminated altogether. The primary objective of a command economy is to fulfill the goals and priorities set by the central planning authority, rather than maximizing profit. Instead of profit, the focus is on meeting the needs of the society as a whole, allocating resources based on predetermined plans and directives. The central planning authority determines the production levels, prices, and distribution of goods and services, aiming to achieve social and economic objectives such as equity, stability, and full employment.