Can you tell me the advantages and disadvantages of command economy?

Answer 1

With a command economy, the government decides how much of each good is to be produced by projecting the need for the good over a period of time.

The advantage, if it is done correctly, is that you avoid, inflationary pressures, and economic cycles since you never stockpile unwanted goods. The problem of course is that nobody has ever been able to predict correctly. It also stifles new product creation since you can not plan how much of something you are going to produce if it has not been invented yet. Communist countries were noted for command economies, but those remaining, such as China, have shifted more towards free market capitalism, even while keeping a communist political system. In between is socialism, which has some aspects of command economy (Chavez in Venezuela is one example). In those cases, only those industries run by the government are command. These are usually commodities, or industries felt to relate to national security.

-Dio

Answer 2

Read this http://econ.la.psu.edu/~bickes/rickcommand.pdf and see if it helps.

Answer 3

how can i hate math?