Command Economy
An economy where supply and price are regulated by the government
rather than market forces. Government planners decide which goods and services
are produced and how they are distributed. The former Soviet Union was an
example of a command economy.
Advantages for a command economy are Everyone gets the same pay load for example if someone is a chef and the other person a lawyer they would get the same pay, Government is able to focus one key areas for example health and education Disadvantages for a command economy are Little incentive to work harder meaning if you work harder you don’t get extra money, In a command economy there is limited freedom meaning you can't make as many choices, not able to make a private company without the government all of these reasons are the disadvantages of a command economy. This article explains the statistics of Cuba and how it is a planned economy http://www.heritage.org/index/country/cuba |