ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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traditional economic system
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Communist command economic system
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socialist command economic system
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market economy
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Detailed explanation-1: -A command economy is a system in which a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.
Detailed explanation-2: -A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.
Detailed explanation-3: -In communist nations, government makes all economic decisions; owns the land, natural resources, industry, banks, and transportation system; and controls all mass communication.
Detailed explanation-4: -In a command economy, the government determines all investments and incomes, it also determines the amount at which the goods that are produced are sold. Communist societies such as Cuba, Soviet Union and North Korea use command economy.
Detailed explanation-5: -Both socialism and communism are types of a command economy. In all three, the government controls businesses, resources, and economic activity in the country.