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How, why and for whom in a command economy. What goods?

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A command economy is a system where the government, rather than the free market, determines what goods should be produced

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market economy; mixed economy; command economyLearn the difference between market, mixed, and centrally planned, or command, economies.

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What Makes Command Economies Fail? Command economies took most of the blame for the economic collapse of the Soviet Union and North Korea.

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___ 30. At what letter can you get the “most consumer goods”? ___ 31. The opportunity cost of moving from “B” to “C” is.

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Why did Adam Smith insist that a market economy would produce consumer goods more efficiently than a command economy?

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An economy is the way goods and services are produced and consumed.

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Consumer: Producer: Goods: Services: Supply: Demand: Natural Resources: Limited (Nonrenewable) vs. Unlimited (Renewable) Resources: Capital: Human Capital: Scarcity: Specialization: Command Economy

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Ultimate decisions about what to produce are made by the people who will actually consume the goods. Planners in a command economy are less

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