Tell some facts about command economy?

Answer 1

A planned economy is an economic system in which a single agency makes all decisions about the production and allocation of goods and services. The term is used most often to refer to a centrally-planned economy (or command economy), in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income.[1] In a centrally-planned economy, the planners decide what should be produced and direct enterprises to produce those goods.[2] A planned economy may either consist of state owned enterprises, private enterprises who are directed by the state, or a combination of both. Planned economies are usually contrasted with market economies, where production, distribution, and pricing decisions are made by the private owners of the factors of production and influenced by market forces. However, it is not necessary for an economy to be either market-based or centrally-planned; other systems also exist.

Important planned economies that existed in the past include the Economy of the Soviet Union, which was for a time the world's second-largest economy. Beginning in the 1980s and 1990s, many governments presiding over planned economies began deregulating and moving toward market based economies by introducing market forces to determine pricing, distribution, and production. Although most economies today are market economies or mixed economies, planned economies exist in some countries such as Cuba and North Korea.[3]

While the term planned economy usually refers to centrally-planned economies, it may also be used to refer to decentralized systems of planning such as participatory economics. [1] [2] [3].

Answer 2

Command Economy Facts

Answer 3

The reason it didn't work was that it failed to factor in some basic facts of human nature. Nobody had an any incentive to work hard because they received the same pay regardless. In addition, individuals actually make better decisions about what to do with their money because they have more detailed information and they have something to lose directly from their decisions. The central planning committee took away that ability, and because they possessed neither of those advantages, made poor decisions. And because manufacturers had nothing to be gained by producing high quality products in great quantities, production came almost to a halt, and as a result most people didn't have some of the basic luxuries that even the poorest Americans enjoy today. In essence, communism was a giant miscalculation based on the mistaken belief that individuals would work for the good of society even if it resulted in no personal benefit, and that people are too stupid to take care of themselves.

Answer 4

u did not anwsermy quston

Answer 5

Read this http://econ.la.psu.edu/~bickes/rickcommand.pdf