Which Statement Best Describes A Command Economy

The Command Economy is a system where people have no choice but to obey orders. In this economy, the government controls everything and everyone. There is no freedom at all. People are not allowed to do anything without permission from the government. The government tells them what they should eat, what they should wear, how much money they should make, and even who they should marry.

The government takes care of its citizens’ basic needs and makes sure they are happy. But the people don’t need to work hard; instead, they get free stuff – food, clothes, shelter, and even sex. Everyone lives happily ever after.

But then something happens. A man named Adam Smith comes along and says,

“Hey! Why are we doing this? We’re slaves. Let’s try something different.”

So he proposes a new economic system. He calls it the Free Market System. Instead of having the government tell us what to do, he said we should decide things for ourselves. anybody wants to start a business. If someone wants to buy some land, let him. If anyone wants to sell his goods, let him. And if someone wants to hire workers, let him. And that’s exactly what happened. Soon, businesses started popping up all over. Then people got tired of working for the government. They wanted to run their own business.  Other wanted to earn their own money. They wanted to be their boss. That’s when the real revolution began.

So now we live in the Free Market System. No one works for the government anymore. everybody work for ourselves. We keep what we earn. They decide how our country is governed. We control our destinies. We are free. Now, I know what you might say. You might say, “That sounds great. But what about the poor?” Well, the Free Market System isn’t perfect. Sometimes bad things happen. Like when people get sick and die. Or when natural disasters strike. When that happens, we call upon the government to help us out. After all, we wouldn’t want anyone to starve or suffer, would we?

But here’s the thing. Even though the government helps us when we need it, we still choose whether or not to use it. We could always turn down the help. We could always refuse to accept it. And we don’t have to take any of it.
We are free to do whatever we want. We just have to remember that sometimes bad things happen. And we have to trade with those issues. But we never have to bow before them. Never. Because we are free.

 Advantages of Command Economy

Government control over the supply of goods and services ensures that they are produced at low cost.
The government can set prices for goods and services without having to worry about competition.
The government can ensure that everyone gets what they need.
There is no incentive for businesses to produce unnecessary products.
Businesses have less incentive to cut corners and cheat their customers.
Consumers get quality products at lower costs.
People who work for the government do not have to compete with each other for jobs.
The government does not have to pay out wages to employees.
The Regime can use taxes to fund social programs.
The Regime can reduce unemployment by providing training and education opportunities.
The government can increase employment by building infrastructure projects.
The cabinet can encourage innovation by funding research and development.
A Command economy is a type of socialism where the state owns and operates the means of production.
A order economy is a type of socialist economy where the central planning authority dictates what should be produce, how much should be produced, and who should produce it.
An adjure command economy is not a free market economy.
An adjure economy is often associated with totalitarian governments.
A command economy is sometimes referred to as a planned economy.
A command economy is characterized by centralized control over the allocation of resources.
An adjure economy is controlled by the government.
A command economy is run by a single party.
A adjure economy is based on the principle of centralization.
A order economy is manage by a central planner.
A command economy is administered by a dictator.
An adjure economy is operate by a leader.
An adjure economy is led by a strong-willed person.



Countries which involved in Command Economy

United States – The United States is the world’s largest economy and is often refer to as the American economy. The U.S. dollar is the world’s reserve currency, and many countries have significant holdings of dollars. The U.S., however, does not print money, making its money supply dependent on private banks. In turn, the government regulates banking activities including interest rates, reserves, capital requirements, and consumer protection. The country also uses a system of public debt securities where loans are issue by the Treasury Department and backed by the full faith and credit of the United States Government.

Canada – Canada is a federation consisting of ten provinces and three territories. Its capital is Ottawa. The country lies between latitudes 52° and 82° N, and longitudes 66° and 140° W. It shares land borders with the United States to the south and west, and Mexico to the northeast.

China – China is the world’s second-largest economy, following only the United States. It is also the world’s fastest-growing major economy (by nominal GDP) and the third largest national economy (by PPP). As of 2016, it had the world’s fifth largest nominal GDP and sixth largest by purchasing power parity. A member state of both the UN and APEC, China is currently the world’s largest exporter and importer.

Germany – Germany is a federal republic compose of 16 states and two autonomous cities. Its capital is Berlin. The country lies between central Europe and Northern Europe, bordered by Denmark, Poland, the Czech Republic, Austria, Switzerland, France, Luxembourg, Belgium, Netherlands, and the North Sea.

India – India is a federal parliamentary republic comprising 29 states and seven union territories. Delhi is the capital of India. The country lies between the Himalayan foothills in the north and the Deccan Plateau in the south, sharing borders with Pakistan to the west, Nepal to the Southeast, China to the northeast, and Bangladesh to the east.

Russia – Russia is a unitary sovereign state located at the crossroads of Europe and Asia, straddling the globe’s northernmost point. Moscow serves as the capital city of Russia. The Russian Federation consists of eleven time zones and spans nine administrative regions; Siberia forms much of the eastern region of the country.

Japan – Japan is a geographically isolate island nation occupying an archipelago in East Asia. It is separate from the Asian mainland by the Tsushima Strait, Korea Bay, and the Sea of Japan. Tokyo is the capital and largest metropolis in Japan.


Characteristics of a Command Economy

1. Central planning

Central planning is where decisions are made at the top level of government. In a command economy, the central planner makes all the decisions about what products should be produce, how much they should cost, and who should produce them. The central planners make these decisions without any input from the people who actually have to use the product.

2. Price controls

Price controls are policies that limit the price that consumers pay for goods and services. These policies are often implement by governments to keep prices low. However, price controls do not work because they prevent companies from making profits. Instead, they force companies to cut costs somewhere else.

3. Monopolies

A monopoly occurs when only one company produces a certain good or service. A monopoly may occur naturally due to a lack of competition or artificially created by government regulations. When a business becomes a monopoly, it means that its customers cannot easily find another provider of the same product.

4. Government subsidies

Government subsidies are financial aid provided by the government to businesses. Subsidies are often give to encourage economic activity in specific industries. For example, the U.S. government provides farmers with subsidies to help them buy fertilizer and seeds.

5. State ownership

State ownership refers to when the government owns all or some of the shares of a private company. The government can then influence the operations of the company by setting rules for how the company operates.

6. Regulation

Regulation is the control of something by law. Governments often regulate businesses to protect their citizens from dangerous products and services. For example, the Food and Drug Administration regulates food safety standards and ensures that drugs are safe before they reach the market.

7. Protectionism

Protectionism is the practice of restricting trade between countries. Countries often engage in protectionist practices to create domestic markets for their own companies. For example, many developed nations impose tariffs on imported products to promote local manufacturing.

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