To get these items, an underground market flourishes so that goods or services that are needed can be received outside of government control. The Advantages of a Command Economy 1. Advantages And Disadvantages Of Command Economy 711 Words 3 Pages Command economy system is a system and the government decides what goods should be produced, how much goods should be produced, and the price of goods to be sold. 7. Refusal could mean jail time… or worse. 4. Because the government put restrictions on many products and services, such offerings may not be available. The exact demands of a society can be met. Private enterprise does not exist … It limits innovation. The authority might misplace incentives. Most, if not all, countries around the world have their own economic system in place. OpinionFront will explain the differences between these two types of economies along with their advantages and disadvantages. Operations are consistent within a command economy. 2. It is an economy that can be helpful, but open to being quickly overwhelmed by others. The greater good of … While a free market do encourage innovation and change, a command economy does otherwise. Apart from this, there will be a rise in production of certain products, which is a great help to communities in overcoming disasters. This has has both advantages and disadvantages when compared to a free market economy. 22 Advantages And Disadvantages Of Asexual Reproduction, 13 Advantages and Disadvantages of Genetic Engineering, 18 Major Advantages and Disadvantages of the Payback Period, 20 Advantages and Disadvantages of Leasing a Car, 19 Advantages and Disadvantages of Debt Financing, 24 Key Advantages and Disadvantages of a C Corporation, 16 Biggest Advantages and Disadvantages of Mediation, 18 Advantages and Disadvantages of a Gated Community, 17 Big Advantages and Disadvantages of Focus Groups, 17 Key Advantages and Disadvantages of Corporate Bonds, 19 Major Advantages and Disadvantages of Annuities, 17 Biggest Advantages and Disadvantages of Advertising. The wealthiest 10% of US households capture 76% of the wealth. Social welfare is a major concern in a command economy, where one of its overriding objectives is ensuring that maximum social welfare will take place. The state of the economy of any nation is determined by the decisions taken by the government. Command economy system is a system and the government decides what goods should be produced, how much goods should be produced, and the price of goods to be sold. People often starve and go without just so the economy of the country will improve. Command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises. This is the only way that outside goods, which may be better than domestic goods, can be received by a population in this type of economy. Either the government or a collective owns the land and the means of production. Competition is discouraged, if it is even allowed. A command economy is a situation in which some sort of central authority makes the major decisions regarding what type of goods and services are produced and made available to consumers within a given geographical location. 4. Because command economy has a unique make-up, production is done as effectively and efficiently as possible. Coordination can be difficult or even impossible. Advantages to a command economy, and examples, will be discussed. This makes it easier to produce products on a larger scale because all resources, not just individualized business resources, are actively working to benefit society.