Ask AI: Explain what command economy is in economics and provide a real world example

Command economy is an economic system in which the government retains centralized control over the production, pricing and allocation of goods and services. In this system, the government makes all economic decisions, rather than allowing the free market to determine all economic activity. A real world example of command economy is the former Soviet Union. During the Soviet period, the government had ownership of all major industries and controlled the distribution of goods and services. It also established wages, prices, and production plans.