What type of economic system is characterized by government control?

A command economy is characterized by significant government control over the production and distribution of goods and services. In this system, the government makes all decisions regarding what to produce, how to produce it, and for whom it is produced. The central authority not only sets prices but often owns the means of production, which can include everything from factories to land. This economic model aims to achieve specific outcomes, such as equitable distribution of resources or rapid industrialization, but can lead to inefficiencies due to lack of competition and innovation.

In contrast, a market economy relies on supply and demand to regulate production and pricing with minimal government intervention. A mixed economy combines elements of both market and command economies, featuring both private enterprise and government regulation, while a traditional economy is based on established customs and practices, relying on subsistence farming or barter systems rather than government control. Thus, the distinguishing feature of a command economy is the level of government involvement, setting it apart from the other economic systems mentioned.