Political Economy Economic Systems Questions
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. It sets production targets, determines prices, and decides what and how much should be produced. The government also owns and operates most, if not all, of the major industries and enterprises. Additionally, it regulates and controls economic activities, including employment, wages, and trade. The primary objective of the government in a command economy is to promote social welfare and achieve specific economic goals, often driven by political ideologies or central planning.