Please name 2 or 3 things that traditional economies and command economies have in common?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Command economies and traditional economies are quite different in the most important ways.  In a command economy, a powerful government tells people how to answer the fundamental economic questions.  In a traditional economy, government has no role in this process and people simply base their decisions on what has always been done.  These are very different systems.  However, there are at least two similarities that we could identify between these two.

In both cases, there is (or at least can be) a need for trade.  In other words, people are not completely self-sufficient in either type of economy.  They do not make everything they need and therefore they have to get things from other people. 

The second similarity is that neither system uses market forces to answer the fundamental economic questions.  Neither of these is a modern economy in which the choices that consumers make determine what things will be made, how they will be made, and who will acquire them.  These are systems that use non-market processes to determine the answers to these questions.

These similarities may not be as important as the differences between these two systems, but they are similarities that  we can identify between command and traditional economies. 


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