Describe the main features of a command market economy.

A command market economy, also known as a centrally planned economy, is an economic system in which the government has significant control over the allocation of resources and the production and distribution of goods and services. In this system, the government plays a central role in making economic decisions, determining what to produce, how much to produce, and how resources should be allocated.

The main features of a command market economy include:

1. Centralized planning: The government sets production targets, determines the allocation of resources, and decides on the distribution of goods and services. It formulates comprehensive economic plans that outline the goals and strategies for the economy.

2. State ownership: The government owns and controls the means of production, including industries, factories, and infrastructure. This allows the government to have direct control over the production process and the allocation of resources.

3. Price controls: The government sets prices for goods and services, often below market equilibrium levels, to ensure affordability for the general population. This can lead to shortages or surpluses of goods, as the government may not accurately determine the demand and supply dynamics.

4. Limited consumer choice: In a command market economy, the government determines what goods and services are produced and made available to the public. Consumer choice is limited as individuals have fewer options and less influence over the types and quality of products available.

5. Lack of competition: With state ownership and control, there is limited competition among producers. The government may establish monopolies or oligopolies, which can lead to inefficiencies and reduced innovation. Without market competition, there is less incentive for producers to improve quality or reduce costs.

6. Income redistribution: Command market economies often prioritize social welfare and aim to reduce income inequality. The government may implement policies such as progressive taxation and social welfare programs to redistribute wealth and provide basic necessities to the population.

7. Limited individual freedom: In a command market economy, individual economic decisions are heavily influenced by the government. There is limited freedom for individuals to choose their occupations, start businesses, or make independent economic choices. The government controls employment, wages, and investment decisions.

8. Lack of market signals: In a command market economy, the price mechanism and market forces do not play a significant role in resource allocation. The government relies on its central planning and directives to determine resource allocation, which can lead to inefficiencies and misallocation of resources.

Overall, a command market economy is characterized by strong government control, limited individual freedom, and centralized planning. While it can provide stability and address social welfare concerns, it often faces challenges such as inefficiency, lack of innovation, and limited consumer choice.