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Command economy

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A command economy (often called a planned economy or centrally-planned economy) is a planned economy where the government directs the production decisions of publicly or privately-owned enterprises. This is said by supporters to be advantageous because it prevents unscrupulous businessmen from taking advantage of the people. It is criticized - chiefly by free market advocates such as Milton Friedman - on the grounds that centralized planning has always been ineffective because it does not rely on price signals to guide production and distribution.

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