ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An economic system that is controlled by the government matches what term below?
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Market Economy
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Command Economy
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Traditional Economy
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None of the above
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Explanation:
Detailed explanation-1: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.
Detailed explanation-2: -A command economy is an economic system where the government has control over the production and pricing of goods and services.
Detailed explanation-3: -The command economy is a component of a communist political system, while a free market system exists in capitalist societies.
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