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A command system, often associated with centrally planned economies, operates under the authority of a central body that makes all economic decisions. For instance, in such a system, the government might dictate production quotas for industries, determining what goods are produced, in what quantities, and at what prices, without input from market forces. This contrasts with market economies, where supply and demand drive decisions. The centralized control can streamline production but may also lead to inefficiencies and a lack of innovation.

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