Command Economic System
Another economic system is the command economic
system. This system depends on the government to make decisions and manage the
factors of production. The command system usually runs in a communist society.
If done correctly there will be no poverty . The advantages of this system are
that there is equality, little or no poverty as the government helps them,
prices are stable because prices are managed by the
government, everyone gets access to health and education and the government has the ability to shift
resources where needed the most. The disadvantages of this economic system are
that there is no private ownership or enterprise as government owns and runs
everything, limited freedom to do anything and no point to work harder as
everyone earns the same in a communist society. As a result of everyone getting access to education, the literacy rate is very high. One example of a command
economy, is Cuba as the government controls everything.