What is the best definition of a command economy?

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2026-03-07 11:05

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A command economy is an economic system in which the government or central authority makes all decisions regarding the production, allocation, and distribution of goods and services. In this system, the state typically owns or controls major industries and resources, with limited or no input from market forces or consumer preferences. The primary goal is often to achieve specific social or economic outcomes, rather than to maximize profit. Examples include former Soviet Union and North Korea.

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