The traditional economy advantages and disadvantages show us that it can be a foundation for growth when a group can settle down and focus on skill development. Refusal could mean jail time… or worse. There is no need for production to seek out research and development within a command economy because the government dictates everything. Examples of Command Economy. Another disadvantage is misplaced incentives where central government controls … Jun 18, 2015 by Crystal Lombardo. Command economy disadvantages include lack of competition and lack of efficiency. Because all economic structures are at the beck and call of the government, personal freedoms are limited within a command economy. 4. Limit the monopolizing: Command economy make it difficult for a monopoly to rule the market, as the major forces are controlled and regulated by the government. It doesn't rely on the laws of supply and demand that operate in a market economy. This limits the export opportunities because there is no knowledge about what those other nations need. The government employs all workers and unilaterally determines their wages and job duties. No advantages can be made by the individuals or the businesses. There are benefits and drawbacks to command economy structures. A command economy has a small number of typical elements: A central economic plan, government ownership of the means of production, and (supposed) social equality are essential features of a command economy. In a free market economy, businesses compete with one other to produce better products. It becomes easier to achieve long-term goals. There is no wastage caused by competition. This creates a flexibility within the industrial sector that other economy formats cannot match. This is a type of economic system might ignore the needs of the societies as in such situations black market can emerge as it will supply the goods that the economy is not producing. Due to their lack of free-market competition, command economies discourage innovation. Capitalism is an economic system whereby monetary goods are owned by individuals or companies. Another allows for the government to dictate these items. 1. . ADVANTAGES AND DISADVANTAGES OF COMMAND ECONOMY. There are three basic economic structures that exist for a society. This may limit personal choice, but it also reduces the chances of a shortage occurring when production rates are based on accurate resources. According to the Washington Post, 35% of US net worth belongs to the top 1% of the population in terms of wealth. What Are the Advantages of a Command Economy? Since their economic plans … The biggest advantages and disadvantages of a command economy show us that it can be a responsive, responsible entity when managed correctly. Rationing occurs within a command economy on a frequent basis because the structures of this type of economy limit communication. 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