How does a socialist government with a command economy manage its economy?

Answers

Answer 1
Answer:

In a command economy, it is the government who decides on the production of goods and services and sets the price for these goods. Both communist and socialist countries make use of command economy.  Even when there is some form capitalism in the country, it is still heavily regulated by government.

Answer 2
Answer:

A Socialist government with a command economy can manage its economy by fixing the prices of the goods on the basis of supply and demand. It can also be done prohibiting the competition within the private sector by securing the set prices and production of the company.

Further Explanation:

Command economy is described as an economy where government have the total authority to take decisions related to the economy of the country. Government decides that how much goods will be produced and at what price it will be sold. It also has control over the investment and income. Sometime command economy is also recognized as planned economy with its government as its central planner. Private proprietorship, labor and capital are either missing or sprucely limited, So as to support central economical plan. A command economy handles an oligopoly business to meet the objectives of national economy

Mobilization of economic resources takes place on large scale. They aren't affected by legal action and can execute massive projects, industrial power projects to meet social demands without any hindrance. On the other hand it has a negative impact that it knocks down other societal needs and leads to the development of shadow economy or black market.

Cuba, North Korea, former Soviet Union and China are some countries to have followed command economy.

Learn more

1. The goal of a command economy is to?brainly.com/question/1362251

2. Which of the following is not an advantage of a free market economy?brainly.com/question/1165126

Answer Details:

Grade: High school

Subject: History

Chapter: Command Economy

Keywords: command, economy, central planner, Private, proprietorship, labor, capital, sprucely, limited, oligopoly, shadow economy, black market.


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Answers

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Answer:

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Explanation:a