The primary group for whom goods and services are produced in a traditional economy is the tribe or family group. In a command economy, the central government decides what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods.

Command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.

A command economy is an economic system in which the government, or the central planner, determines what goods and services should be produced, the supply that should be produced, and the price of goods and services.

a type of economic system in which production of goods and services is determined by a central government, which usually owns the means of production. Also called a planned economy.

Marxist–Leninist states

In a socialist economy, the government owns and controls the means of production; personal property is sometimes allowed, but only in the form of consumer goods.

The main difference is that socialism is compatible with democracy and liberty, whereas Communism involves creating an ‘equal society’ through an authoritarian state, which denies basic liberties. Communism is a political and economic ideology – closely associated with the state Communism of the Soviet Union and China.