ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -Key Takeaways Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.
Detailed explanation-3: -Many people call command economies “socialism” or even “communism". In reality, ALL ECONOMIC SYSTEMS ARE MIXED SYSTEMS. Pure market economies and pure command economies do not exist.
Detailed explanation-4: -Government Controls Production in Command Economy In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.