A command economy is a system where the government makes all decisions about the production and distribution of goods and services. In this type of economy, the state controls resources and determines what to produce, how much to produce, and at what price. This approach aims to achieve specific economic goals, such as equality and full employment.
In a command economy, individual choices are limited, as the government prioritizes collective needs over personal preferences. Examples of command economies include historical cases like the former Soviet Union and North Korea, where central planning was used to manage economic activities.