Who makes economic decisions?
Who owns the factors of production?
What role do consumers play in economic decisions?
in command economies
In command economies, economic decisions are primarily made by the government or a central authority. They allocate resources, determine production targets, set prices, and make decisions regarding trade and distribution.
In these types of economies, the factors of production, such as land, labor, and capital, are owned by the state or by public entities. Private ownership is limited, and the government has control over most means of production.
Consumers in command economies have limited influence over economic decisions. They mainly act as recipients of goods and services produced by the government or state-owned enterprises. Consumer preferences and demand may be taken into account to some extent, but the final decisions are made by the central authority.