1. Sustain Self-Sufficiency.
2. Preserve Traditional Customs.
3. Create Equality Within a Society.
4. Promote Free Economic Choices.
Answer: Create Equality Within a Society.
The primary goal of a command economy is to create equality within a society by centralizing economic control in the hands of the government. In this system, government authorities make all major economic decisions—what goods and services are produced, how much is produced, and at what prices.
This approach seeks to minimize inequality by ensuring that resources are distributed more evenly across the population, allowing everyone access to essential goods and services, regardless of income level or social status.
For example, in the former Soviet Union, the government-controlled key industries, such as manufacturing, agriculture, and transportation, to ensure that basic needs were met for all citizens. The goal was to avoid the income disparities seen in capitalist economies, where market forces determine prices and access to goods.
Another example is modern-day North Korea, where the state directs almost all aspects of economic life, including food distribution, to promote equality among citizens. However, while these systems aim for equality, they often face challenges such as limited innovation, inefficiencies, and lack of consumer choice, as personal economic freedom is restricted in favor of state priorities.
Command economies often contrast sharply with free-market economies, where economic decisions are driven by supply and demand and individual choice, leading to a wider variety of products but also potential disparities in wealth and access to resources.
