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Nathen Mcclain
History
26 February, 12:45
All of thes are found in a commond economy except
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Damarion Ramsey
26 February, 13:13
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The correct answer is ownership of corporate stock
A command economy, also called a centralized economy, is an economic model that defends State control over the economy. This model became known after its application for more than 70 years in the extinct Soviet Union.
In the centralized economy, most of the companies that operate in the economy are state-owned, that is, they belong to the state. Contrary to what happens in the market economy, the law of supply and demand does not dictate the laws of commerce, the government makes decisions. Thus, a product that is missing does not suffer from the increase and, likewise, a product that is accumulated does not suffer any reduction.
Thus, the logics and strategies of the market follow the elaboration of plans. These plans, which in the Soviet Union were called "five-year plans", have the function of unraveling and solving the problems and weaknesses of the economy. Another objective is to contain unemployment, by expanding the productive sector.
With the planning of the economy, it would be possible to control the problem of income distribution, since everyone would have jobs and wages that would not be enough to accumulate, but that would allow the maintenance of living costs in society.
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