hello there everybody in YouTube land welcome to the mr. sin Channel today we're going to be talking about a command economy now make sure to check out my other videos on the different types of economies which will be on traditional a mixed economy a market economy and they'll also be some on communism and capitalism and socialism now enough of the different other economies we're talking about command today so let's figure out what a command economy is and how it answers the three basic economic questions now while watching the video makes sure to take out your guided notes you can find them in the description below I've created these notes to go along with the video to make sure that you understand all the important information and when it comes to your test or quiz you can just refer back to your notes instead of watching the video again a command economy is when we have a central authority that is going to answer all the economic questions the government is normally what it takes the shape of and this government will answer the what the how and for whom they are in charge of everything individual businesses and individuals in the society have very little say of what's going on today North Korea is probably the closest thing to a current day command a true command economy now communism will also fall partially under here and we'll get to that another time when we get into capitalism communism and socialism if you need to figure that out check out those videos but we're gonna get into now what are some of the advantages to a command economy and what are some of the disadvantages now like I just said command economies answer the three basic economic questions with a central authority normally taking the shape of the government if you need more information on the economic questions check out the video that I have on my channel you can click the link on the top right now but a command economy does have a bunch of advantages it might not seem like it because you're being told what to do but a command economy can actually change directions pretty fast an example of it is the Soviet Union they were able to go from a rural agricultural society to a leading industrial one in a relatively short period of time now they did some things that are questionable and we don't need to get into that right now but as an economy goes they moved pretty fast now other advantages too is you don't have to worry about what you're going to do you're kind of told and there's a lot of public services that are offered for people at very little cost or to no cost now there's a lot of disadvantages to this type of an economy though now one of the big ones is it stifles innovation and creativity I mean if you are getting told what to do at all times why are you gonna care we start to see people lose incentives people get pushed out of society and while it can handle some bigger things and change pretty fast it does an awful job at meeting the wants and needs of the individuals living in that country or society wherever we're talking about and it can't deal with the day-to-day issues is a very hard time grappling with those and it also requires a huge bureaucracy that has to dictate and tell everyone what to do and so it's very slow especially again when it comes to these minor details so there is some advantages to a command economy but there's also a lot of disadvantages and it's important to note both of them we've seen societies throughout history that have used a command economy and some are still using it today and those are the main things that you need to know about a command economy make sure you understand how it answers the three basic economic questions what are some of the advantages and disadvantages to it and how the government works in this economy that'll be really important for you to remember until next time I'm mr. syn thank you for stopping by make sure to subscribe and support the channel and I'll talk to you later