Acommand economy tends to exist under a communist government that provides little regulation. democratic government that provides some regulation. representative government that provides no regulation. socialist government that provides a lot of regulation.

The correct answer is - socialist government that provides a lot of regulation.

The socialist countries tended to have command economies. These types of economies were totally dictated by the government itself, so everything was planned upfront for the economy of the country by the government and the experts. This types of economies often faced a lot of problems because the planning for it was usually in the way if the conditions were optimal, but understandably they were not.

The correct answer is “socialist government that provides a lot of regulation”. A command economy tends to exist under a socialist government that provides a lot of regulation.  

EXPLANATION:  

A command economy is a market system where the authority (government) decides what goods and stuff should be produced and sold, how much the goods should be produced, and how much the price of the goods should be offered and sold. The government also determines the incomes and investments. In short, a command economy is not a free market system because the government has the whole control. The examples of command economy are the former Soviet Union, North Korea, and Cuba. China was a command economy before it changed into a mixed economy with both capitalistic and communistic elements.  

Key concepts of a command economy are:

•Government central planners are the one who controls and owns the means of production and the distribution of the output.

•Command economy suffers from problems such as poor incentives for managers, planners, and workers.

•Command economy’s central planners cannot determine the quantities, methods, locations, proportions, and timing of the economic activity without private property and the operation of supply and demand.  

•Command economy is better for reaching fair distribution and social welfare over private profit.  

LEARN MORE:  

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

1.What are the pros of a mixed market economy for most citizens?  

2.An example of a product with a purely competitive market is?  

KEYWORDS: command economy, economy, mix economy, government  

Subject: Geography

Class: 10-12

Sub-chapter: Command economy