How does a socialist government with a command economy manage its economy?

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Social Studies

Marble

6 April, 23:30

How does a socialist government with a command economy manage its economy?

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Rogelio Finley · Answer 1

In a socialist system, where the government manages the economy, all the decisions are taken by the government: the prizes, the amount of goods produced and the amount of goods sold are all decided centrally, by the government.

This means that if the governments decided to produce less than the demand, some people won't be able to have that product.