World Economic Systems Questions Medium
In a command economy, the role of the government is central and extensive. The government has complete control over the allocation of resources, production decisions, and distribution of goods and services. Its primary objective is to achieve economic stability and social welfare by planning and directing economic activities.
The government in a command economy sets production targets, determines the types and quantities of goods and services to be produced, and decides the allocation of resources among different sectors. It also establishes prices for goods and services, controls wages, and regulates the distribution and consumption of products.
Additionally, the government plays a crucial role in the ownership and control of the means of production. It typically owns and operates key industries, such as utilities, transportation, and heavy manufacturing. The government may also control the banking and financial sectors, as well as natural resources.
Furthermore, the government in a command economy is responsible for ensuring equitable distribution of resources and wealth. It aims to minimize income inequality and provide basic necessities to all citizens. It may implement social welfare programs, such as healthcare, education, and housing, to ensure a certain standard of living for the population.
Overall, the government's role in a command economy is to exercise centralized control and make decisions in the best interest of the society as a whole. It aims to achieve economic stability, social equality, and meet the needs of the population through comprehensive planning and regulation.