Term of the Day command economy

Term of the Day

command economy

An economy in which market mechanisms are replaced by a centralized stateauthority which coordinates all economic activity through commands,directives and regulations for the purpose of achieving broader socio-economic and political objectives. In a command economy, most forms ofoutput are publicly owned but the state exerts control over production,distribution and prices. For example, Nazi Germany was considered to be a command economy as was the Soviet Union under Stalin.
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Usage Example
command economy is considered a key feature of any communist society since the government has complete control and determines price and production off all goods and services within the economy.