What is a command economy?

A planned economy is a type of economic system where investment and the allocation of capital goods take place according to economy-wide economic and production plans. A planned economy may use centralized, decentralized or participatory forms of economic planning.

Command economy is discussed below.

Explanation:

A command economy is one that is regulated by a Union authority - regularly the government.

The government regulates the sources, allots the sources, directs the use of sources and the allocation of the goods produced by those sources.

Following a command economy, there is commonly a full job and special government can reply immediately in times of emergency.