World Economic Systems Questions
In a command market economy, the government plays a central role in making economic decisions and controlling the allocation of resources. The government has the authority to determine what goods and services are produced, how they are produced, and who receives them. It sets production targets, establishes prices, and regulates the distribution of goods and services. The government also owns and operates key industries and enterprises, and may control the means of production. The main objective of the government in a command market economy is to promote social welfare and ensure economic stability.