| Revision as of 02:47, 2 November 2005 editEd Poor (talk | contribs)Extended confirmed users, Pending changes reviewers59,195 edits not the same as planned economy← Previous edit | Revision as of 02:51, 2 November 2005 edit undoEd Poor (talk | contribs)Extended confirmed users, Pending changes reviewers59,195 edits stub with too much intro and not enough modyNext edit → | ||
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| In a '''command economy''', the government determines production levels and sets prices. This is said to be advantageous because it prevents unscrupulous investors from taking advantage of the people. It is also criticized - chiefly by ] advocates such as ] - on the grounds that centralized planning has always been ineffective because it ignores the ]. | |||
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Revision as of 02:51, 2 November 2005
In a command economy, the government determines production levels and sets prices. This is said to be advantageous because it prevents unscrupulous investors from taking advantage of the people. It is also criticized - chiefly by free market advocates such as Milton Friedman - on the grounds that centralized planning has always been ineffective because it ignores the price signal.
See: