What Is a Command Economy?
A command economy is a system where the government controls and regulates production, distribution and prices.
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1.In a command economy, who sets prices and production?
A command economy is a system where the government controls and regulates production, distribution and prices.
2.What was Gosplan?
From 1928, five-year plans set output targets in physical quantities, such as tons of steel.
3.At a fixed price of 2 coins, shoppers want 100 loaves and the bakeries bake 60. What is the result?
The shelf empties early and a line forms; in a market the shortage would push the price up.
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Sources (5)
- Wikipedia, Planned economy (Definitionen, Berechnungsdebatte, Beispiele nach Land
- Friedrich A. Hayek, "The Use of Knowledge in Society", American Economic Review 35 (4), 1945, S. 519-530 (Econlib-Fassung)
- Wikipedia, Five-year plans of the Soviet Union (erster Fuenfjahresplan)
- Wikipedia, Mixed economy
- Eigene Rechnung: synthetisches Brot-Beispiel (Festpreis gegen Gleichgewicht)
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