ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government increases the subsidy on education.
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The government removes most of the trade barriers.
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More resources are allocated by government commands.
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The government provides more funding to universities for research and development.
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Detailed explanation-1: -In command economies, decisions about both allocation of resources and allocation of production and consumption are decided by the government.
Detailed explanation-2: -Free market economies Markets enable mutually beneficial exchange between producers and consumers, and systems that rely on markets to solve the economic problem are called market economies. In a free market economy, resources are allocated through the interaction of free and self-directed market forces.
Detailed explanation-3: -In a free market economy, the products are produced according to the satisfaction of consumers. Therefore, resources for production are allocated after doing a thorough analysis on consumer satisfaction which is regarded as the top most priority without comprising the goal of profit maximization.
Detailed explanation-4: -Belarus. Cuba. Iran. Libya. North Korea. Russia.