Match each institutional feature of a command (socialist) economic system on the left with its corresponding operational function or outcome on the right.
- Central Planning Authority (e.g., Gosplan)Sets explicit output targets and allocates raw materials directly, bypassing market supply and demand forces.
- Administered Fixed PricingSets consumer prices below market-clearing levels, resulting in chronic shortages and non-price rationing.
- Public Ownership of Productive AssetsDirects capital and labor toward state-determined social priorities rather than private profit maximization.
- Turnover Tax and State SubsidiesRegulates disposable income, absorbs enterprise surpluses, and balances state budget objectives.
Answer
Central Planning Authority pairs with setting output targets and input allocation; Administered Fixed Pricing pairs with setting prices below market-clearing levels leading to shortages; Public Ownership of Productive Assets pairs with directing capital toward social priorities rather than private profit; Turnover Tax and State Subsidies pairs with regulating disposable income and balancing state budget objectives.
Each feature of command socialism strictly aligns with state-directed economic operations: central planning boards determine quantitative output targets, rigid price fixing leads to persistent consumer goods shortages, state asset ownership eliminates profit-driven resource allocation, and turnover taxes serve as primary state revenue tools.
Step-by-Step Solution
Key Concept
Operational Features and Mechanisms of Command Socialism