COMMAND ECONOMY

CENTRALLY PLANNED ECONOMY

• It is an economic system in which the government makes all decisions on the three economic questions.

TERMS

ADVANTAGES

• The government controls the prices and buying so that can keep people out of debt.
• It keeps their budget in line because they are limited on the amount of money they can spend and the amount of goods they can buy.

DISADVANTAGES

• The government controlled everything they do.
• If you run out of resources that you need then you have to wait on the government's funds to get what you need.

COUNTRIES

• North Korea and Cuba are currently under the rule of command economies.
• The Soviet Union and China were command economies but are now mixed economies.