A command economy is a system of economic organization where a central government makes all decisions regarding production and distribution of goods and services. This type of economy has been used in the past by many countries and is still used today in some places. In this article, we will look at what is prohibited in a command economy and how it affects the people living in it.
Understanding a Command Economy
A command economy is a system of economic organization where the government makes all decisions about production and distribution. This type of economy is often seen as a way to ensure that resources are used in the most efficient way possible. The government decides what should be produced, how it should be produced, and how it should be distributed. The government also sets prices and wages for goods and services. In a command economy, individuals do not have the same freedom of choice as in a market economy.
Prohibited Behaviors in a Command Economy
In a command economy, certain behaviors are prohibited. Private ownership of businesses is not allowed, meaning that the government has complete control over production and distribution. Prices and wages are set by the government and cannot be changed. Individuals are not allowed to trade or barter with one another, and private markets are not allowed. This means that people must rely on the government for all their needs and cannot take part in the free market. In addition, individuals are not allowed to save or invest money, as this is seen as a form of capitalism.
In conclusion, a command economy is a system of economic organization where the government makes all decisions about production and distribution. Certain behaviors are prohibited in a command economy, such as private ownership of businesses, trading and bartering, and saving and investing. This system of economic organization has been used in the past and is still used in some places today.