|TERM OF THE DAY||MAY 25, 2016|
An economy in which market mechanisms are replaced by a centralized state authority whichcoordinates all economic activity through commands, directives and regulations for the purpose of achieving broader socio-economic and political objectives. In a command economy, most forms ofoutput are publicly owned but the state exerts control over production, distribution and prices. For example, ... Read more
The command economy did not allow farmers the freedom to grow as much corn as they wanted; instead, they had to grow as much as the government told them to grow or else they would not be allowed to grow corn again.