ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Private property, profit, and competition
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Government ownership, no competition, and no profit
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Government ownership, competition, and no profit
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Government ownership, profit, and no competition
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Detailed explanation-1: -A centrally planned economy is an economic system in which the government controls the production and distribution of goods and services. In this type of economic system, government favors the elimination of private property and promotes a common or collective ownership ideology.
Detailed explanation-2: -Characteristics of centrally planned economies pertain to ownership, sovereign decision making, price setting, distribution, production, economic decision making, incentives, and political control.
Detailed explanation-3: -In a centrally planned economy, the government owns both land and capital. The government decides what to produce, how much to produce, and how much to charge. Socialism is a social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society.
Detailed explanation-4: -Features or characteristics of a planned economy Usually, prices are decided by the price control mechanism. Production is planned for at least five or ten years in advance. Involves a high level of bureaucracy to manage and plan economic decisions. A higher degree of political control.