What is the role of the transportation system in a command economy?

Economics Command Economy Questions



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What is the role of the transportation system in a command economy?

In a command economy, the transportation system plays a crucial role in facilitating the movement of goods and resources according to the central planning authority's directives. It is responsible for ensuring the efficient distribution of goods and resources to meet the predetermined production targets and fulfill the needs of the population. The transportation system helps in connecting different regions, factories, and distribution centers, enabling the smooth flow of goods and resources within the economy. Additionally, it assists in coordinating the movement of inputs and outputs between different sectors and industries, ensuring the effective functioning of the command economy.