What is the role of the service sector in a command economy?

Economics Command Economy Questions



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What is the role of the service sector in a command economy?

In a command economy, the role of the service sector is typically limited. The government controls and directs the allocation of resources, including labor, and prioritizes the production of goods over services. As a result, the service sector is often smaller and less developed compared to a market economy. The government may provide essential services such as healthcare, education, and public utilities, but the range and quality of services are generally limited.