BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an economy directed to basic subsistence rather then to the market
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an economic system in which private individuals or businesses own capital goods
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type of economic system where investment, production and the allocation of capital goods take place
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Detailed explanation-1: -A planned economy is a type of economic system where the distribution of goods and services or the investment, production and the allocation of capital goods takes place according to economic plans that are either economy-wide or limited to a category of goods and services.
Detailed explanation-2: -The command economy, also known as a planned economy, requires that a nation’s central government own and control the means of production. Private ownership of land and capital is nonexistent or severely limited.
Detailed explanation-3: -A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy.
Detailed explanation-4: -In a centrally planned economy, major economic decisions are made by a central authority such as the government.
Detailed explanation-5: -Key terms. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated.