define command economy

February 09, 2010

Posted by teacher

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Hi connieewing, here is the definition for 'Command economy'.

Command economy, also called 'Planned economy' or 'directed economy' is an economic system that is controlled wholly by a centralized authority like the government.

While individual decisions are not interfered with, the chief economic sectors in a country are governed by the central planning authority.

Command economy exists in all the communist countries and a few capitalist countries.

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