|Posted on April 15, 2014 at 9:30 AM|
A command economy occurs when central planners (not markets) make all of the economic decisions. The planners determine what will be produced, how many units will be produced, and for whom the goods will be produced for. Command economies in practice are highly inefficient compared to market economies.
AP Macroeconomics / AP Microeconomics Unit 1 Basic Economic Concepts