Free Market & Command Economies | A-Level Economics Notes

These revision notes cover everything you need to know about Shutdown Points for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since 2017.

What is a command economy?

A command economy is when the allocation of goods and services is determined using government intervention. It exists when the government controls what to produce, how to produce it, and who to distribute goods and services to.

What is a free-market economy?

A free-market economy is when the allocation of goods and services is determined by market forces e.g. supply and demand.