What is the role of the state-owned enterprises in a command economy?

Economics Command Economy Questions



63 Short 71 Medium 46 Long Answer Questions Question Index

What is the role of the state-owned enterprises in a command economy?

In a command economy, the role of state-owned enterprises is significant. These enterprises are owned and controlled by the government, and they play a central role in the allocation of resources and production decisions. State-owned enterprises are responsible for implementing the economic plans and directives set by the government. They are often involved in key industries such as energy, transportation, telecommunications, and heavy manufacturing. The state uses these enterprises to exert control over the economy, ensuring that resources are allocated according to the government's priorities and objectives. State-owned enterprises also serve as a means for the government to generate revenue and provide employment opportunities for the population.