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Shaniya DaCosta Command Economy P5 Kahoot (Examples (Cuba :flag-cu:,…
Shaniya DaCosta Command Economy P5 Kahoot
Bibliography
http://connectusfund.org/list-of-16-big-pros-and-cons-of-a-command-economy
http://study.com/academy/lesson/command-economy-definition-characteristics-advantages-examples.html
http://www.investopedia.com/terms/c/command-economy.asp
https://www.thebalance.com/command-economy-characteristics-pros-cons-and-examples-3305585
http://www.economicshelp.org/blog/glossary/command-economy/
Major points
Cuba, North Korea, Iran, Libya, and Former Soviet Union are all examples of Command economies
The government creates a central economic plan. The five-year plan sets economic and societal goals for every sector and region of the country.
A command economy is where a central government makes all economic decisions.
The government tells what to produce, how to produce, and whom to produce.
Also called a planned economy
Pros
It boosts industrial power- Command economies create industrial power to complete massive projects,while achieving vital social goals.
It allows for better mobilization of resources- Due to the unique make-up of command economies, production is done as efficiently and effectively as possible.
It does not allow monopolizing. It is impossible for a monopoly to rule in a command economy because all the forces of the market are regulated by the government. .
Examples
Cuba :flag-cu:
North Korea :flag-kp:
Former Soviet Union
Iran :flag-ir:
Libya
Belarus
Cons
It restricts freedom-Due to the fact that this type of economic system is tied to communist countries, it is no surprise that it also takes the freedom away from the people and puts full control in the hands of the government alone.
It may ignore societal needs-Command economy often ignores the needs of the society for its betterment. Workers will not be given the options on where they can work or where they can move.
No competition- The government owns all the industries and does not encourage competition or actually exerts effort to eliminate it. The benefits gained from competition are not seen in this type of market.
