What Are The Advantages And Disadvantages Of Command Economy?


6 Answers

Veronica  Perera Profile
Veronica Perera answered
A command economy is where the govt. Allocates resources according to a planning process.

The advantages are : 1. The govt. Will ensure a more equal distribution of income and wealth
  2. Essential goods/services will be provided to the community. For e.g
  3. The govt. Can determine which goods are produced. It has the power  
  of decision making.
  4. It provides a minimum standard of living for all citizens.

The disadavantages are : 1. There is little consumer choice. Since everything is allocated according to a planning process, consumers will have little say in what is provided directly by the state.
  2. Little variety of goods and services
  3. Loss of individual freedom
  4. Leads to allocative and productive inefficiency due to a lack of   competition and no profit motive.  
  5. Subsidies on essential goods and services quickly lead to shortages. Therefore queuing is common in command economies.
Anonymous Profile
Anonymous answered

Maximises the continues utilization of resources.

Distributes wealth equally among all people so there are no inequalities.

Only products that are required are produced hence prevents production of socially undesired products.


Lack innovation.

Can not detect consumer preferences accurately.

Resources are misallocated as consumer demands are not satisfied by production.

overstaffing problems, poor product quality, lack of efficiency.

Anonymous Profile
Anonymous answered
Maximize consumers' welfare and demands
mostly affordable for the consumers

No competition to motivate the workers
labor only try to maintain the standards ,
achieve the government's target but did not improving them
Anonymous Profile
Anonymous answered

Disadvantage: You have no civil rights. It is not domatrical

Sana Rashid Profile
Sana Rashid answered
In short, the advantages are stability, meeting collective objectives and conformance to a grand design. The disadvantages are inefficient resource allocation, absence of a profit motive, lack of choice for consumers and corruption.
You can read the details here: en.wikipedia.org

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