Short Answer 
A command economy is an economic system where the government makes all decisions related to production, pricing, and distribution of goods, often associated with communist states. Personal ownership of land and the influence of consumer demand are typically prohibited, with China being a notable example of this economic model.
Step 1: Understand the Definition of a Command Economy
A command economy is an economic system where the government makes all decisions regarding production, pricing, and distribution of goods and services. In this environment, the government’s role is central, controlling all economic activities to meet the needs of society rather than relying on market forces. This system is often associated with communist countries, where state planning is prevalent.
Step 2: Identify What is Prohibited in a Command Economy
In a command economy, certain aspects of private enterprise and market influence are significantly restricted or prohibited. Key prohibitions include:
- Personal ownership of land: Individuals do not have the right to privately own land; the state typically owns all property.
- Influence of consumer demand: Consumer preferences do not dictate production or pricing; the government decides what to produce based on its own goals.
Step 3: Recognize Examples of Command Economies
Some countries are well-known for operating under a command economy system. The most notable example is:
- China: Historically Marxist, China has implemented a command economy where the government oversees all production and pricing decisions, although it has integrated some market elements in recent decades.