COMMAND ECONOMY Meaning and
Definition
-
A command economy is an economic system in which a central authority, typically the government, has complete control over the allocation and distribution of resources and decisions regarding production and consumption. In this system, the government takes control of all economic activities, including setting prices, determining output levels, and planning for future development.
In a command economy, the government plays a significant role in planning and directing the economy. It determines the types and quantities of goods and services that will be produced, as well as the means of production and the distribution of resources. The government also decides the wages and working conditions of workers, and may determine the employment opportunities available to individuals within the economy.
Command economies are often associated with socialist or communist ideologies, where the collective well-being of society is prioritized over individual interests. The central authority seeks to achieve economic goals and social objectives by mobilizing and organizing resources based on a centrally planned economic plan. The primary aim is to create an equitable distribution of wealth and resources, and to minimize wealth disparities among individuals.
However, command economies have been criticized for their lack of efficiency and innovation due to the absence of market forces such as competition and individual entrepreneurship. They are also prone to corruption, misallocation of resources, and bureaucratic inefficiencies. Historically, command economies have mostly been replaced or liberalized to varying degrees in favor of market-based economic systems.
Common Misspellings for COMMAND ECONOMY
- xommand economy
- vommand economy
- fommand economy
- dommand economy
- cimmand economy
- ckmmand economy
- clmmand economy
- cpmmand economy
- c0mmand economy
- c9mmand economy
- conmand economy
- cokmand economy
- cojmand economy
- comnand economy
- comkand economy
- comjand economy
- commznd economy
- commsnd economy
- commwnd economy
- commqnd economy
Etymology of COMMAND ECONOMY
The term "command economy" emerged in the 1940s during the Cold War era to describe an economic system in which the government has centralized control over the means of production and distribution. The etymology of the term can be broken down as follows:
1. Command: The word "command" refers to the act of exercising authoritative or controlling power over something or someone. It originates from the Old French word "comander" meaning "to order, instruct, or control". Ultimately, it derives from the Latin word "commandare", which combines "com-" (intensive prefix) and "mandare" (to entrust or order).
2. Economy: The word "economy" derives from the Greek word "oikonomia" which means "household management" or "management of resources". It is a combination of "oikos" (house) and "nomos" (law or custom).
Infographic
Add the infographic to your website:
